IPS Worldwide trustee seeks approval of asset sale by end of June

By Sarah Lizee

Olympia, Wash., May 17 – The U.S. trustee for IPS Worldwide, LLC’s Chapter 11 case filed an emergency motion for approval of the sale of substantially all of the debtor’s assets on Friday with the U.S. Bankruptcy Court for the Middle District of Florida.

U.S. Trustee Alex D. Moglia is also seeking dates to conduct an auction and a hearing to consider final approval of a sale.

“In order to maximize the value of its assets for the benefit of all stakeholders in this Chapter 11 case, the trustee has made the decision to proceed with the sale of substantially all of the debtor’s assets pursuant to sections 363 and 365 of the Bankruptcy Code to the highest and best bidder,” the motion said.

Moglia said that since his appointment as trustee, he has been in discussions and negotiations with a number of parties who have expressed interest in the assets. However, the trustee said the terms of the transaction have not yet been finalized, including terms that would enable the company to present a stalking horse buyer.

“Currently, the highest letter of intent is from EM6 in the amount of $850,000,” the motion said.

Moglia said that it is in the best interest of all stakeholders to proceed with the auction, with or without a stalking horse, so that a sale can be completed by the end of June.

Deposits must be made in the greater of $100,000 or 10% of the proposed purchase price, $850,000. The minimum incremental overbid is set at $50,000, but may be increased or decreased at the trustee’s discretion.

The closing date is expected for two days following the sale order, but no later than June 30.

The proposed auction date is June 13. The proposed bid deadline is June 6.

The trustee has requested that a final sale hearing be scheduled for no later than the week of June 17.

IPS Worldwide is an Ormond Beach, Fla.-based freight payment company. The company filed bankruptcy on Jan. 25 under Chapter 11 case number 19-00511.

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