Benevis bidding procedures approved; auction scheduled for Sept. 30

By Caroline Salls

Pittsburgh, Sept. 15 – Benevis Corp. obtained court approval of the bid procedures for the proposed sale of its business, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, lender entity New Benevis Holdco, Inc. will serve as the stalking horse bidder for the court-supervised sale process.

New Benevis has agreed to credit bid the amount of its secured claims, as well as pay cure costs associated with the business and assume liabilities.

According to the order, New Benevis is not entitled to payment of a break-up fee or expense reimbursement if it is not ultimately the winning bidder.

Competing bids are due by 6 p.m. ET on Sept. 24.

Bids for substantially all of the company’s assets must provide cash consideration equal to or greater than the amount of debtor-in-possession financing obligations at closing, plus $200.5 million in pre-bankruptcy obligations, less a $10 million reserve amount, plus a $750,000 initial bid increment.

An auction will be held on Sept. 30, if necessary. Bids at auction must be made in minimum increments of $250,000.

The sale hearing is scheduled for Oct. 2.

Marietta, Ga.-based Benevis is a comprehensive dental practice support services company. The company filed bankruptcy on Aug. 2 under Chapter 11 case number 20-33918.

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