Auto Plus bid procedures draw limited objection from committee

By Sarah Lizee

Olympia, Wash., March 6 – The motion of IEH Auto Parts Holding LLC, doing business as Auto Plus, seeking court approval of bid procedures for its assets drew a limited 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 said the debtors should be required to consult with the committee with respect to, among other things, any decision to refuse access to the data room, the form of asset purchase agreement, any potential break-up fee, determination of qualified bidders and bids; potential selection of a stalking horse, bidding increments, and selection of the winning and backup bids.

The committee also said credit bidding should be limited to only those secured creditors that have valid liens that secure an allowed claim.

Credit bidding should also not be permitted with respect to any unencumbered assets, the group said.

The committee also said its right to object to any and all claims should be preserved.

The group also said the notice of winning bid should be filed no later than 48 hours after close of the auction, there should be a deadline by which the stalking horse must provide adequate assurance information to counterparties, and the deadline for parties to object to adequate assurance of future performance should be 5 p.m. ET on May 18.

The committee said it has made progress in its discussions with the debtor over the bid procedures, but a formal agreement hasn’t been reached.

As previously reported, key dates under the proposed bid procedures include an April 3 deadline to designate a stalking horse bidder, a May 3 bid deadline, a May 10 auction, a May 19 sale hearing and a May 31 deadline to close the sale.

Lincoln Partners Advisors LLC is the debtors’ proposed investment banker.

A hearing on the bid procedures is scheduled for March 10.

The Kennesaw, Ga.-based aftermarket auto parts retail chain filed bankruptcy on Jan. 31 under Chapter 11 case number 23-90054.

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