Violin Memory bid procedures approved; auction scheduled for Jan. 23

By Caroline Salls

Pittsburgh, Jan. 6 – Violin Memory, Inc. received court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company said in the bid procedures motion that it has not identified an initial or stalking horse bidder for its assets.

If a stalking horse bidder is ultimately selected, Violin Memory said it would pay that bidder a breakup fee of up to 3% of the purchase price and reimburse up to 2% of the bidder’s expenses if an alternative transaction is completed.

Under the procedures approved Friday, bids are due by 5 p.m. ET on Jan. 18. An auction will be held on Jan. 23, and the sale hearing is scheduled for Jan. 30.

The sale is expected to close on Jan. 31.

Santa Clara, Calif.-based Violin Memory develops and supplies computer data storage products. The company filed bankruptcy on Dec. 14 under Chapter 11 case number 16-12782.

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