According to the U.S. Bankruptcy Court docket, ALCO Stores filed a motion for orders (i) approving bid procedures and (ii) authorizing the (a) sale of claims against Mastercard and Visa.
The motion explains, “As there are currently several parties interested in purchasing the Claims, the Debtors and their professionals have determined that an auction would result the best return to the Debtors and their estates. In connection with the Debtors’ marketing efforts and ongoing discussions with potential purchasers of the Claims, the Debtors have drafted a form of Claim Sale Agreement.”
The motion continues, “The Debtors will select the highest and best bid and to serve as the opening bid for the Auction (the ‘Opening Bid’). The bidding at the Auction will start at the Opening Bid and continue in increments of at least $10,000 in cash or cash equivalents. To be eligible to participate in the Auction, each bid and each Potential Bidder submitting such a bid must, in the Debtors’ sole discretion: (1) offer to consummate the Sale Transaction on terms no less favorable to the Debtors than those set forth in a copy of the CSA…include a good-faith deposit in immediately available funds in the amount of 10% of their proposed initial bid….If any Qualified Bid other than the Opening Bid for the Claims has been received, the Debtors will conduct an auction.…The Auction shall take place at 10:00 am (prevailing Central Time) on April 20, 2015.”
The Debtors filed a separate motion for an expedited hearing. Read more bankrupt company news.