MediaMath committee objects to proposed bid procedures for assets

By Sarah Lizee

Olympia, Wash., July 24 – MediaMath Holdings, Inc.’s official committee of unsecured creditors objected to the company’s proposed bid procedures for its assets, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The committee, which was formed two business days prior to filing the objection, said it hasn’t had enough time to assess the debtors’ proposed sale process.

“While the committee appreciates the debtors’ efforts to engage with the committee’s professionals over the weekend to begin to bring the committee up to speed, the committee’s professionals don’t even have the ability to share details with committee members as the debtors have yet to provide the committee a confidentiality agreement,” the committee said in its objection.

“While the committee is certainly supportive of a sale process that is intended to benefit all constituents, it simply has not had a fair opportunity to assess the propriety of the extremely expedited timeline being proposed by the motion.”

The committee said the debtors, presumably with the consent or at the direction of their first-lien lender, Goldman Sachs Specialty Lending Group, LP, decided to shut down operations and fire its employees only days before filing bankruptcy after a going-concern sale fell through.

The debtors then filed bankruptcy with the stated purpose of completing an efficient wind-down of operations and a liquidation of accounts receivable.

“While the debtors could have filed a Chapter 7 proceeding, they chose Chapter 11 and with it, the benefits and burdens that come with a debtor-in-possession process,” the committee said.

“Only 2 weeks later, the debtors reversed course and, on an emergency basis, sought approval of expedited sale process with bids due in two weeks.”

However, the debtors don’t intend to market the business as a going concern, limiting the likely benefits of the sale process to only Goldman, the committee stated.

“These Chapter 11 cases should not be run for the sole benefit of Goldman,” the committee said.

The group said it should be given a fair opportunity to properly represent and advocate for the interest of unsecured creditors.

To do this, the committee said it needs time to assess the debtors’ sale and marketing efforts, determine whether there is any opportunity for a going-concern sale that could provide real benefits to terminated employees and a vendor community owed more than $125 million, and take an active role in finding the best purchaser for the debtors’ assets.

And, given the proposed credit bid rights in favor of Goldman, the committee said it further needs time to start its investigation into the events leading up to the bankruptcy filing and the validity and extent of Goldman’s prepetition liens.

The New York-based company develops digital advertising media and data management technology solutions for advertisers. The company filed bankruptcy on June 30 under Chapter 11 case number 23-10882.

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