The U.S. Bankruptcy Court approved COPSync’s sale of assets free and clear and bid procedures in connection with the sale.
As previously reported, “After expressing a serious interest in the COPsync, Kologik began a due diligence process that recently culminated in that certain Asset Purchase Agreement dated September 29, 2017 (the ‘Stalking Horse APA’) by and between the COPsync, on the one hand, and Koligik’s wholly owned subsidiary, Kologik Capital, (the ‘Purchaser’), on the other. Through the Stalking Horse APA, COPsync will sell its assets in return for a combination of credit, cash and equity.”
In addition, “In addition to the Stalking Horse APA, Purchaser purchased an assignment of the Dominion Credit Facility from Dominion on September 29, 2017 and, as a result, is now the holder of that credit facility. As of the date of the filing of the petition, Purchaser is credit bidding the sum of $1,000,000 as a part of its bid under the Stalking Horse APA. Relatedly, Kologik (Purchaser’s parent) agreed to assist in funding COPsync’s emergency cash needs through (i) a secured note in the amount of $15,000 issued September 22, 2017, and (ii) a secured note in the amount of $16,597.46 issued September 25, 2017 (collectively, the ‘Kologik Secured Notes’) that were perfected by a UCC-1 filed in Delaware on September 25, 2017. Finally, Kologik (Purchaser’s parent) agreed to assist COPsync with its postpetition cash needs by helping fund a $300,000 D.I.P. Loan through an affiliated company, Kologik Financing Partners (‘KFP’).”
The Disclosure Statement continues, “Overbid APA shall: specify the amount of cash or other form of consideration acceptable to the Debtor offered by the bidder for the Purchased Assets, with a minimum initial bid comprised of two components: (i) a cash bid of $2,100,000 (computed as Purchaser’s $1,000,000 credit bid of the Dominion Credit Facility, plus Purchaser’s credit bid of the $300,000 DIP Facility, plus Purchaser’s $600,000 bid of cash, plus Purchaser’s $100,000 breakup fee, plus the $100,000 minimum overbid increment).”
Read more COPSync bankruptcy news.