Beyond Oblivion's bid procedures approved, auction set for March 20

By Lisa Kerner

Charlotte, N.C., Feb. 10 - Beyond Oblivion Inc.'s bid procedures for the sale of substantially all of its assets were approved, according to court documents filed Feb. 10 with the U.S. Bankruptcy Court for the Southern District of New York.

The company's supplemental motion, filed on Thursday and included in the approval, requires potential bidders to become prequalified by 4 p.m. ET on March 9 by submitting financial and other information to the company's investment banker BDO Capital Advisors, LLC.

A party will become a qualified bidder by submitting a bid package that includes a deposit of the greater of 10% of the cash portion of the proposed purchase price and $150,000, as well as a written bid of at least $1.5 million.

Completed bid packages are due by 4 p.m. ET on March 15.

A special board committee reserves the right to designate a stalking horse bidder by March 9.

Any stalking horse bidder would be limited to a 3% break-up fee and $50,000 in direct out-of-pocket expenses to be paid if it is not ultimately the high bidder for the assets.

The auction is scheduled for March 20, the sale hearing date is March 26, and the closing date is March 28.

Beyond Oblivion, a New York-based digital music company, filed for bankruptcy on Jan. 23. Its Chapter 11 case number is 12-10282.

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