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Lifesize’s proposed sale to Enghouse draws objection from committee
By Sarah Lizee
Olympia, Wash., July 3 – Lifesize Inc.’s proposed sale to stalking horse and winning bidder Enghouse Systems Ltd. drew an objection from the official committee of unsecured creditors, according to documents filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.
The committee, which was formed about three weeks ago, said it is generally not opposed to a sale of the debtors’ operating assets through a process that is fair, maximizes the value of the assets sold, and pays all administrative expenses of the estates.
The committee said that at this time, it does not know if that is the case here, given the short time it has been involved.
Specifically, the committee said it is opposed to a proposed sale that includes the sale of non-operating assets, including causes of action against insiders and non-debtor affiliates and entities related to insiders, insurance policies, and proceeds to Enghouse, especially before an investigation into or a valuation of such litigation assets has been completed.
The committee said that if the litigation assets are deemed valuable by the purchaser, then the purchaser should disclose the value of the litigation assets as soon as possible so that the committee can determine whether it agrees with the purchaser’s valuation. Otherwise, the purchaser should exclude the litigation assets from the sale, the group said.
The purchase price under the stalking horse agreement is $21 million, as previously reported.
The sale hearing is set for July 7.
Lifesize is an Austin, Tex.-based provider of video conferencing and omnichannel contact center solutions. The company filed bankruptcy on May 16 under Chapter 11 case number 23-50038.
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