Auto Plus bid procedures approved; auction set for May 10

By Sarah Lizee

Olympia, Wash., March 10 – IEH Auto Parts Holding LLC, doing business as Auto Plus, received approval of the bid procedures for its assets, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the official committee of unsecured creditors had filed a limited objection to the bid procedures motion.

The group had asked the court to require the debtor to consult with the committee on several things, including choosing a stalking horse and picking winning and backup bids. A redline showing changes to the procedures shows that the company will consult the committee throughout the sale process.

The committee had also said credit bidding should be limited to only those secured creditors that have valid liens that secure an allowed claim, and that credit bidding should also not be permitted with respect to any unencumbered assets.

Friday’s order said that, subject to the challenge period, to the extent that the debtor-in-possession lender or prepetition lender has a valid and perfected lien on property of the debtors that secures an allowed claim on any of the debtor’s assets, the DIP lender and prepetition lender have the right to credit bid the full dollar amount of its secured claim, provided that they may not credit bid with respect to any unencumbered assets.

The committee had also said its right to object to any and all claims should be preserved. Friday’s order granted this request.

Key dates under the 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 investment banker.

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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