Multiple parties – including SkillSoft Corporation; ACE American Insurance Company, Illinois Union Insurance Company, Westchester Surplus Lines Insurance Company, Federal Insurance Company and Great Northern Insurance Company (collectively, the “Chubb Companies”); Global Information Technology; Oracle America; Lansing Board of Water & Light and ScanSource – filed with U.S. Bankruptcy Court separate objections to Ciber’s motion for an order (i) establishing bidding procedures relating to the sale of the Debtors’ assets, including approving a break-up fee and expense reimbursement, establishing procedures relating to the assumption and assignment of certain executory contracts and unexpired leases, including notice of proposed cure amounts, approving form and manner of notice relating thereto and scheduling a hearing to consider the proposed sale; and (ii) approving the sale of the Debtors’ assets free and clean of all liens, claims, encumbrances and interests.
Chubb Companies’ objection asserts, “Based on the terms of the Stalking Horse Purchase Agreement, it appears that the Debtors seek to transfer certain insurance policies to the Purchaser as a part of the Sale Transaction, while retaining other insurance policies for themselves. This procedure would improperly split the Insurance Programs. Any assumption of either of the Insurance Programs and the respective obligations thereunder must be in its entirety, and therefore the Chubb Companies object to the Motion to the extent that it contemplates a Sale Transaction to the Stalking Horse Bidder that improperly splits the Insurance Programs.”
In addition, “Furthermore, as of the filing hereof, the Auction has not occurred and accordingly, it is unknown if the Stalking Horse Bidder or a Successful Bidder at the Auction will be the ultimate Purchaser of the Purchased Assets from the Debtors. Even assuming that the Stalking Horse Bidder is the ultimate Purchaser, given the expedited nature of the sale process, the Chubb Companies have not yet had an opportunity to assess whether the Stalking Horse Bidder would satisfy the Chubb Companies’ credit and underwriting criteria.”
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