USA Commercial Mortgage gets court approval of bid procedures for $46.5 million loan sale

By Caroline Salls

Pittsburgh, Nov. 9 - USA Commercial Mortgage Co. obtained court approval of bidding procedures for the proposed sale of USA Capital First Trust Deed Fund LLC's ownership interest in 47 loans, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Nevada.

SPCP Group, LLC is the stalking horse bidder at $46.5 million.

Under the bid procedures, if SPCP is not the high bidder, USA Commercial will pay it a $1.5 million break-up fee and an expense reimbursement of up to $500,000.

The initial overbid must be for at least $2 million more than the purchase price. Subsequent bids must be at least $100,000 more than the previous bid.

The bid procedures also require that the cash consideration must equal or exceed the cash component of SPCP's offer plus the minimum overbid.

A $2.3 million cash deposit is required to participate in the auction.

The sale can only be consummated under a plan of reorganization.

The auction is scheduled for Dec. 7.

USA Commercial Mortgage, a privately held real estate lender based in Las Vegas, filed for bankruptcy on April 13. Its Chapter 11 case number is 06-10725.

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