Global Motorsport granted approval of bid procedures for $16 million asset sale

By Caroline Salls

Pittsburgh, Feb. 15 - Global Motorsport Group, Inc. obtained court approval of the bid procedures for its proposed $16 million sale of substantially all of the company's assets, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Dae-Il USA, Inc. is the stalking horse bidder for the sale, and it has paid a $1 million deposit.

If Dae-Il is not the high bidder, Global Motorsport will pay it a $500,000 break-up fee and up to $300,000 in sale-related expenses, provided, however, that the total break-up fee and expense reimbursement cannot exceed $650,000.

According to the bid procedures order, the company cannot pay the break-up fee and expense reimbursement without first consulting with its official committee of unsecured creditors and lender agent.

Competing bids are due at 4 p.m. ET on Feb. 25 and must include a $1 million deposit.

Minimum overbids must be for at least $16.8 million, and subsequent bids must be for at least $100,000 more than the previous bid.

The auction will be held on Feb. 27, and the sale hearing is scheduled for Feb. 28.

Global Motorsport, a Morgan Hill, Calif.-based wholesale distributor of aftermarket motorcycle parts and accessories, filed for bankruptcy on Jan. 31. Its Chapter 11 case number is 08-10192.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.