USA Commercial stalking horse bidder asks court to force company to disclose competing bid information

By Jennifer Lanning Drey

Portland, Ore., Dec. 1 - USA Commercial Mortgage Co.'s stalking horse bidder in the proposed sale of USA Capital First Trust Deed Fund LLC's ownership in 47 loans asked the U.S. Bankruptcy Court for the District of Nevada to force USA Commercial to disclose information regarding competing bids in the sale, according to a Friday filing with the court.

Stalking horse bidder SPCP Group, LLC said USA Commercial has received two deposits in relation to the sale. However, the company refuses to provide SPCP with further information on the deposits, including whether the deposits were made by qualified bidders, according to the motion.

SPCP said it will be unable to bid competitively at an auction, scheduled for Dec. 7, if it cannot first analyze competing bids.

Additionally, SPCP said by withholding the details of the competitive bids, USA Commercial is potentially impairing the value that could be realized for the assets and depriving SPCP of its right to challenge the qualifications of competing bidders or their bids.

SPCP has requested that an expedited hearing be scheduled on the matter.

USA Commercial Mortgage, a privately held real estate lender based in Las Vegas, filed for bankruptcy on April 13. Its Chapter 11 case number is 06-10725.

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