Hospitality Staffing bid procedures, stalking-horse protections OK'd

By Jim Witters

Wilmington, Del., Nov. 8 - Hospitality Staffing Solutions Group, LLC received approval for bidding procedures and stalking-horse protections in connection with the planned $22.9 million sale of substantially all of its assets to HS Solutions Corp., according to documents filed Nov. 8 with the U.S. Bankruptcy Court for the District of Delaware.

HS Solutions is entitled to credit bid all or a part of its pre-petition secured claims and its claims related to Hospitality Staffing's $7 million debtor-in-possession financing facility.

Bid procedures

Under the procedures approved by the court,

• Competing bids must be for the purchase price plus the full amount of outstanding obligations, including the DIP facility and the pre-petition secured claims, the breakup fee and expense reimbursement and at least $200,000;

• The bid deadline is 5 p.m. ET on Dec. 4;

• An auction, if necessary, will be conducted at 10 a.m. ET on Dec. 6;

• The sale hearing is scheduled for 10 a.m. ET on Dec. 12; and

• If HS Solutions is not the successful bidder, the debtors will pay a breakup fee of 3% of the purchase price and reimburse expenses of up to 2% of the credit bid amount.

HSS, an Atlanta-based provider of hospitality staffing services to hotels, resorts and casinos, filed for bankruptcy on Oct. 23. The Chapter 11 case number is 13-12740.

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