IPS Worldwide bid procedures approved; auction scheduled for June 19

By Caroline Salls

Pittsburgh, May 30 – The U.S. Trustee for IPS Worldwide, LLC’s Chapter 11 case received court approval of the bid procedures for the proposed sale of substantially all of the company’s assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the Middle District of Florida.

“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,” U.S. Trustee Alex D. Moglia said in his motion.

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.

Bids are due by 5 p.m. ET on June 13. An auction will be held on June 19, if necessary, and the sale hearing is scheduled for June 20.

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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