Knotel bid procedures, stalking horse deal OK’d with modifications

By Sarah Lizee

Olympia, Wash., Feb. 22 – Knotel, Inc.’s motion for approval of the bid procedures for substantially all of its assets and entry into a stalking horse agreement was approved Monday by the U.S. Bankruptcy Court for the District of Delaware, with modifications made to the bid protections and the sale timeline.

As previously reported, the company requested approval of the stalking horse asset purchase agreement with Digiatech, an affiliate of Newmark Group, Inc. The agreement had initially included a 3% termination fee and a $500,000 expense reimbursement. However, the termination fee was removed.

Under the bidding procedures, bids are due by 10 a.m. ET on March 12, an auction will be held later in the day at 2 p.m. ET, if needed. A sale hearing will be held on March 18.

Initially, the company sought a bid deadline of 4 p.m. ET on Feb. 28, an auction on March 2, and a sale hearing on March 4.

Competing bids must exceed the stalking horse bid, plus the expense reimbursement and $500,000.

The official committee of unsecured creditors and Regions 3 and 9 U.S. trustee Andrew R. Vara had both objected to the bid procedures, but Monday’s order said that all objections that hadn’t already been withdrawn, waived or settled are overruled.

New York-based Knotel operates a flexible workspace platform that matches, tailors and manages space for customers. The company filed bankruptcy on Jan. 31 under Chapter 11 case number 21-10146.

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