MTE Holdings gets court approval of bidding procedures for assets

By Sarah Lizee

Olympia, Wash., Oct. 15 – MTE Holdings LLC obtained court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, 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 backup for the plan process.”

Under the sale procedures, non-binding indications of interest were 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.

A sale hearing is scheduled for Nov. 25.

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.

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

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