GVS Texas secures court approval of bid procedures for sale of assets

By Sarah Lizee

Olympia, Wash., Nov. 12 – GVS Texas Holdings I, LLC received court approval of the bid procedures for the sale of some of its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

Qualified bids are due by 6 p.m. ET on Feb. 11. An auction will be held on Feb. 28. A sale hearing will take place in March.

According to the amended bid procedures, the company’s lenders, Midland, ESS-GV Holdings, LLC and RREF III Storage LLC, and equity holder World Class Holdings I, LLC by Natin Paul, will each be deemed qualified bidders, so long as they submit the appropriate letter of intent, good faith deposit and other documentation required by the court.

ESS and RREF will have the right to credit bid, so long as the lenders’ credit bid provides cash consideration to cover any and all estimated administrative claims, priority claims, any other secured debt claims senior to the lenders’ claims and general unsecured claims. The debtors will provide the estimated amount of such claims no later than 15 days prior to the bid deadline.

Midland will also have the right to credit bid; however, in the event sales proceeds are not enough to satisfy the secured claim of the trust, administrative and priority claims in full in cash, the debtors will cancel the sale.

Additionally, any lenders’ credit bid must also provide cash consideration to pay in full any other secured debt claims senior to the lenders’ claims, unless such other secured debt claim holders consents to alternative treatment.

World Class will be required to satisfy the deposit requirement.

The company may, but is not required to, consider proposals for plans of reorganization.

Any stalking horse agreement would include bid protections of up to 3% of the purchase price.

GVS Texas is an indirect subsidiary of GVS Portfolio I B, LLC, which does business as Great Value Storage, an Austin, Tex.-based storage chain. GVS Texas Holdings I filed bankruptcy on June 17 under Chapter 11 case number 21-31121.

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