WorldVentures sets bidding procedures for substantially all assets

By Sarah Lizee

Olympia, Wash., Jan. 22 – Spherature Investments LLC, which does business as WorldVentures, is seeking court approval of the bidding procedures for substantially all of its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Texas.

The company has received a non-binding letter of intent from WV Holdings Co. LLC for an estimated purchase price of $69.5 million, with $10 million constituting cash. As part of the letter of intent, WV Holdings has agreed to serve as stalking horse bidder.

The debtor is seeking approval of stalking horse bid protections, including a break-up fee of $500,000, an expense reimbursement of up to $500,000, a minimum initial bid of $250,000 and successive overbid increments of $500,000.

Under the proposed bidding procedures, bids would be due by 5 p.m. ET on March 26, an auction, if needed, would be held on March 29, and a sale hearing would take place on March 31.

Interim cash collateral use

Also on Thursday, the company received interim approval to use the cash collateral of Montgomery Capital Advisers, LLC. A final hearing is scheduled for Feb. 16.

Plano, Tex.-based WorldVentures sells travel and lifestyle community memberships. The Chapter 11 case number is 20-42492.

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