Velti wins approval of asset sale to GSO; Jan. 2 closing expected

By Jim Witters

Wilmington, Del., Dec. 20 - Velti Inc. received approval for the sale of substantially all of its assets to GSO MMBU Acquisition LLC during a Dec. 20 hearing in the U.S. Bankruptcy Court for the District of Delaware.

Velti attorney Richard A. Chesley said the sale closing is scheduled for Jan. 2, and a plan of liquidation will be filed "shortly after the closing."

GSO is an affiliate of GSO Capital Partners LP.

The debtors said that, without the sale, the company would be forced to liquidate, and creditors would receive no return.

The purchase includes the assumption of liabilities, a $26.25 million reduction in the total amounts outstanding under Velti's debtor-in-possession financing agreement, a $3.75 million reduction of the total amount outstanding under a pre-bankruptcy credit agreement and $1.4 million in cash for payment of cure costs for assumed executory contracts and other costs and expenses.

GSO also has agreed to fund a $5.25 million wind-down budget, Chesley said.

London-based Velti provides mobile software platforms, applications and services for operators and advertising agencies in southeastern Europe, the United Kingdom and the United States. The U.S. operations filed for bankruptcy on Nov. 4 under Chapter 11 case number 13-12878.

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