Orleans Homebuilders seeks approval of $170 million asset sale

By Caroline Salls

Pittsburgh, April 13 - Orleans Homebuilders, Inc. requested court approval of the bid procedures for the proposed $170 million sale of substantially all of its assets to NVR, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

In addition to the $170 million cash purchase price, NVR has agreed to assume liabilities including those related to amounts outstanding under contracts and leases to be assumed and assigned in connection with the sale.

If NVR is not the high bidder at auction, Orleans Homebuilders will pay it a 2% termination fee and reimburse up to $1 million of its sale-related expenses.

Initial competing bids must be for at least $178 million, which consists of the amount of the base purchase price, the termination fee and the expense reimbursement as well as a $3.6 million initial minimum overbid.

Subsequent bids at auction must be made in increments of at least $1 million.

The bid deadline is noon ET on June 16. All bids must include a 10% deposit.

A hearing on the approval of the bid procedures is scheduled for May 4.

Orleans Homebuilders, a Bensalem, Pa.-based developer, builder and marketer of single-family homes, townhouses and condominiums, filed for bankruptcy on March 1. The Chapter 11 case number is 10-10684.

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