MTE Holdings requests approval of sale procedures as backup to plan

By Caroline Salls

Pittsburgh, Sept. 14 – MTE Holdings LLC requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Saturday with the U.S. Bankruptcy Court for the District of Delaware.

MTE said it has prioritized deadlines for the solicitation of debtor-in-possession and exit financing to give it every opportunity to move forward with a consensual plan of reorganization “because most stakeholders have informed the debtors that they prefer that alternative.”

However, the company said other stakeholders, primarily its MDC secured lenders, “have demanded a Section 363 sale process as a back up for the plan process.”

Under the proposed sale procedures, non-binding indications of interest will be due by 5 p.m. ET on Sept. 25, and binding bids must be submitted by 5 p.m. ET on Nov. 6.

An auction will be held on Nov. 13, if necessary. Bids at auction must be made in minimum increments of $1 million.

The proposed procedures allow MTE to select a stalking horse bidder and to offer that bidder protections to be paid if it is not ultimately the winning bidder.

A hearing on approval of the bid procedures is scheduled for Oct. 13.

MTE is a Midland, Tex.-based holding company. The company filed bankruptcy Oct. 22, 2019 under Chapter 11 case number 19-12269.

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