Violin Memory: Winning bid for assets calls for plan sponsorship deal

By Caroline Salls

Pittsburgh, Jan. 27 – Violin Memory, Inc. said the winning bidder at an auction for substantially all of its assets came from an entity that will provide a debtor-in-possession financing facility and some recoveries to Violin Memory’s creditors under a plan of reorganization.

According to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware, the winning bid remains subject to the execution and approval of definitive documentation, including an agreement among the bidder, the company and Violin Memory’s official committee of unsecured creditors related to the plan to be sponsored by the bidder.

The notice did not give any specific information on the identity of the bidder, known as VM Bidco LLC, or the economic terms of the winning offer.

Violin Memory said it will update the court on the status of the winning bid at a hearing scheduled for Monday.

Santa Clara, Calif.-based Violin Memory develops and supplies computer data storage products. The company filed bankruptcy on Dec. 14 under Chapter 11 case number 16-12782.

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