MD Helicopters has approval of bid procedures for all assets

Chicago, April 28 – MD Helicopters, Inc. now has a court order setting the bid procedures, auction, hearing and deadlines relating to the sale of substantially all of its assets, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The deadline for stating an intention to submit a qualified bid is 4 p.m. ET on May 20.

Qualified bids in writing are due by 4 p.m. ET on June 3.

If the debtors receive one or more bids, besides the stalking horse bid, the auction will be conducted at 10 a.m. ET on June 9.

Objections to the assumed contract(s) should be received by 4 p.m. ET on May 11.

If there is more than one bid, the sale hearing will be held at 9 a.m. ET on June 17.

Otherwise, the sale hearing will be at 9 a.m. ET on May 26.

As previously reported, the company has entered into a stalking horse agreement with a creditor consortium led by Bardin Hill and MBIA Insurance Corp.

The purchase price is a credit bid against $150 million of debt under a term loan agreement and an assumption by the group of up to $60 million of debtor-in-possession obligations. The credit bid will be increased by the difference between $60 million and the outstanding DIP debt being assumed, up to a maximum increase of $30 million.

The stalking horse agreement does not include a breakup fee, expense reimbursement or any other bid protections.

The Mesa, Ariz.-based helicopter manufacturer filed Chapter 11 bankruptcy on March 30 under case number 22-10263.

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