DeCurtis’ stalking horse bid protections draw U.S. trustee objection

By Sarah Lizee

Olympia, Wash., May 19 – DeCurtis Holdings LLC’s proposed bid procedures for the sale of its assets drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company has lined up a stalking horse credit bid agreement with its first-lien lenders, including Invictus Global Management, LLC as agent.

Under the proposed bid procedures, competing bids must include and identify a cash component sufficient to pay the credit bid amount, as well as the stalking horse bid protections and the incremental overbid (i.e., an amount no less than $43.25 million, or $24 million if the subject bid does not provide for the purchase of the DXP assets).

Vara said he objects to the motion to the extent that it seeks to provide bid protections to the lender in the form of an expense reimbursement in a maximum amount of $3 million.

“Bid protections are intended to provide an incentive for a party to expend the time and resources performing necessary due diligence to make a stalking horse bid,” Vara said in his objection.

“Here, the lender did not need any additional incentive to place a bid, as it is already incentivized to protect the value of its collateral as a secured lender to the debtors and will not need to be compensated if it is not the prevailing bidder.”

Under the proposed bid procedures, the bid deadline is 10 a.m. ET on June 9, an auction is scheduled for June 12, and a sale hearing will take place on June 14.

The company is hoping to close the sale by June 29.

Orlando, Fla.- based DeCurtis provides guest experience and operational management product-focused SaaS software solutions. The company filed bankruptcy on April 30 under Chapter 11 case number 23-10548.

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