MTE seeks further exclusivity after receiving more bids, plan proposals

By Sarah Lizee

Olympia, Wash., Feb. 9 – MTE Holdings LLC is seeking a sixth extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period through March 22 from Feb. 8 and the solicitation period through May 21 from April 9.

After scheduling an auction for the sale of substantially all of the debtors’ assets for Jan. 29, the debtors continued to receive investor interest up to and beyond the bid deadline of Jan. 15.

On Jan. 27, Natixis, New York Branch and BMO Harris Bank NA submitted a credit bid for the assets. The debtors then adjourned the auction to Feb. 5.

During the intervening week, the debtors continued their negotiations with several interested parties, which yielded additional firm bids.

Also, two parties provided the debtors with term sheets for a proposed plan of reorganization. Once again, the auction was adjourned to Feb. 16.

To date, the debtors have received five bids that either constitute qualified bids or are close to being qualified under the bid procedures order, and two separate plan proposals.

Concurrently, the debtors’ cash collateral use was extended through April 2 and certain milestones were extended. Now, the debtors must announce a winning bidder and back-up bidder for the assets by Feb. 22 and file a plan of reorganization or receive court approval to sell substantially all of the assets by March 1.

In connection with the revised milestones, the debtors said they need an additional extension of the exclusive periods to preserve their exclusive right to complete their ongoing processes to finalize a stand-alone reorganization plan or, in the alternative, to sell substantially all of their assets.

“This proposed extension will benefit the debtors’ estates, as upending the debtors’ control of their exit strategy now risks jeopardizing the last six months of efforts of all parties in interest,” MTE said.

A hearing is scheduled for Feb. 23.

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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