GVS Texas gets OK of new bid procedures, stalking horse agreement

By Sarah Lizee

Olympia, Wash., Feb. 2 – GVS Texas Holdings I, LLC received approval of new bid procedures for substantially all of its assets, according to an order filed late Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The company also received approval to enter into a $450 million stalking horse agreement with BRE WWG Storage Partners JV III, LLC.

The bid is subject to higher and better offers. Under the renewed bid procedures, the bid deadline is 6 p.m. ET on Feb. 11, an auction may be held on Feb. 21 and a sale hearing will take place on March 16. If there is no auction, the sale hearing will take place on Feb. 16.

Bid protections under the stalking horse deal include a 1.5% breakup fee and a $1.5 million expense reimbursement. The bid protections will constitute administrative expense claims.

Overbids must be equal to or higher than the base amount of the stalking horse bid, plus the breakup fee and expense reimbursement, plus 1% of the base amount of the stalking horse bid.

The company is hoping to close the sale by May 15.

GVS Texas is an indirect subsidiary of GVS Portfolio I B, LLC, which does business as Great Value Storage, an Austin, Tex.-based storage chain. GVS Texas Holdings I filed bankruptcy on June 17, 2021 under Chapter 11 case number 21-31121.

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