Gissing outlines auction bidding procedures for assets

Chicago, Sept. 6 – Gissing North America LLC outlined its revised stalking horse bidding procedures in a stipulation to entry of order filed with the Bankruptcy Court for the Eastern District of Michigan.

The schedule for the bidding procedures is now extended: Oct. 14 for the bid deadline, an auction date of Oct. 18, a sale hearing for Oct. 24 and a deadline for entry of the sale order on Oct. 26. The closing date remains Oct. 31.

The sale objection deadline is set for 5 p.m. ET on Oct. 20 with replies due by 5 p.m. ET on Oct. 21.

A break-up fee and expense reimbursement of up to 3% of the cash purchase prices will be available for all stalking horse bids.

Qualified bidders may bid on either some or all of the assets.

The DIP lenders and the prepetition lenders agree that if the sale price is at least $24 million, then half of the net sale cash proceeds (after payment of all sale costs) above $24 million, up to a $2 million cap, will be used to pay allowed claims.

The cap will be reduced dollar-for-dollar for any claim that is cured by any purchasers of the debtors’ assets or otherwise paid.

The Bingham Farms, Mich.-based company is a manufacturer of acoustic systems for the automotive industry. The company filed bankruptcy on Aug. 8 under Chapter 11 case number 22-46160.

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