Independent Pet Partners’ bid procedures draw U.S. trustee objection

By Sarah Lizee

Olympia, Wash., Feb. 21 – Independent Pet Partners Holdings, LLC’s proposed bid procedures for some of its stores drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Vara said he objects to the bid procedures because the $750,000 expense reimbursement under the proposed stalking horse agreement is not necessary and otherwise chills competitive bidding.

He also said some aspects of the contract assumption and assignment procedures are inadequate.

The U.S. trustee said he has been in constructive discussions to resolve these concerns with the debtors and stalking horse purchaser and hopes that prior to the hearing the parties will have narrowed the issues down.

Vara said he filed the objection to preserve his rights due to the impending objection deadline.

As previously reported, the debtors decided to enter into a stalking horse agreement for 66 of their stores in five states under the Chuck and Don’s and Kriser’s Natural Pet banners with IPP Buyer Acquisition, an entity formed by the prepetition lenders enter into a stalking horse agreement for 66 of their stores in five states under the Chuck and Don’s and Kriser’s Natural Pet banners with IPP Buyer Acquisition, an entity formed by the prepetition lenders.

The purchase price under the stalking horse agreement includes a $60 million credit bid and some assumed liabilities.

A hearing on the bid procedures is scheduled for Feb. 23.

The multichain pet care business has headquarters in Woodbury, Minn. The company filed bankruptcy on Feb. 5 under Chapter 11 case number 23-10153.

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