GreenTech Automotive bid procedures OK’d; auction set for April 11

By Caroline Salls

Pittsburgh, March 19 – GreenTech Automotive, Inc. obtained court approval of the bid procedures to sell substantially all of its assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

GreenTech and a group of A-3 and A-4 investors prepared an asset purchase agreement and agreed to proposed auction procedures, the motion said.

The consideration for the assets is $8 million, plus a waiver by each member of the investor group to any right to distribution from any plan of liquidation or reorganization confirmed by court related to their respective investments in GreenTech, exclusive of their respective interest in the debtor-in-possession financing.

A break-up fee of 3% of the purchase price and an expense reimbursement up to 2% of the reasonable expenses incurred will be paid to the stalking horse bidder if it is not ultimately the winning bidder.

The purchase price for competing bids, which are due by 5 p.m. ET on April 10, must include a minimum cash payment of $8.5 million.

An auction will be held on April 11, if necessary. The minimum overbid amount at auction will be $100,000.

The sale hearing is scheduled for April 16.

GreenTech is a Sterling, Va.-based electric vehicle manufacturer. The company filed for bankruptcy on Feb. 26, 2018 under Chapter 11 case number 18-10651.

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