Velti cancels auction, will ask court to approve stalking horse bid

By Caroline Salls

Pittsburgh, Dec. 17 - Velti Inc. cancelled the auction for substantially all of its assets and will ask the U.S. Bankruptcy Court for the District of Delaware to approve the stalking horse bid from GSO MMBU Acquisition LLC, according to a Tuesday court filing.

As previously reported, the GSO Capital Partners LP affiliates' stalking-horse bid includes the assumption of liabilities, a $26.25 million reduction in the total amounts outstanding under Velti's debtor-in-possession financing agreement, a $3.75 million reduction of the total amount outstanding under a pre-bankruptcy credit agreement and $1.25 million in cash for payment of cure costs for assumed executory contracts and other costs and expenses.

The company said only the stalking horse bid had been received by the Dec. 16 bid deadline.

The sale hearing is scheduled for Dec. 20.

London-based Velti provides mobile software platforms, applications and services for operators and advertising agencies in southeastern Europe, the United Kingdom and the United States. The U.S. operations filed for bankruptcy on Nov. 4 under Chapter 11 case number 13-12878.

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