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Pipeline Data seeks approval of procedures for $8 million asset sale
By Caroline Salls
Pittsburgh, Nov. 21 - Pipeline Data Inc. requested court approval of the bid procedures for the proposed $8 million sale of substantially all of its assets to Applied Merchant Systems West Coast, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.
If Applied Merchant is not the high bidder at auction, Pipeline Data will pay it a $200,000 break-up fee and reimburse up to $150,000 of its sale-related expenses.
Competing bids are due by 4 p.m. ET on Dec. 28 and must equal or exceed the sum of the proposed purchase price, the amount of the break-up fee and expense reimbursement and a $100,000 initial overbid.
Subsequent bids at auction must be made in minimum increments of $100,000.
The bid procedures hearing is scheduled for Dec. 19. The auction will be held on Jan. 4.
Cash use approved
In addition, Pipeline Data was granted interim court approval to use the cash collateral of its senior lenders to fund its operations while in bankruptcy.
The final cash collateral hearing is also scheduled for Dec. 19.
Pipeline Data, a Brashear Falls, N.Y.-based credit card payment processing and merchant services company, filed for bankruptcy on Nov. 19. Its Chapter 11 case number is 12-13123.
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