Videology unsecured creditors object to asset sale bid protections

By Caroline Salls

Pittsburgh, June 1 – Videology, Inc.’s official committee of unsecured creditors objected to the bid procedures for the company’s proposed asset sale, arguing that the bid protections may chill bidding, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

“The committee supports the debtors’ pursuit of a value-maximizing sale pursuant to bid procedures that facilitate a fair, robust, and competitive process,” the objection said. “Certain provisions of the bid procedures proposed by the debtors, however, will chill bidding and are not beneficial to the estates or creditors.”

Specifically, the committee raised concerns about the size and scope of the proposed bid protections. The committee said Videology is proposing a 4.8% break-up fee and a $500,000 expense reimbursement that would be paid to the stalking horse bidder “in an unreasonably broad set of circumstances.”

In addition, the creditor group said the company did not give it “a seat at the table during the sale process.”

The committee said it is in talks with the stalking horse bidder regarding the issues raised.

New York-based Videology is a software provider for converged TV and video advertising. The company filed bankruptcy on May 10 under Chapter 11 case number 18-11120.

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