GreenTech gets approval of bid procedures for $50 million asset sale

By Caroline Salls

Pittsburgh, Nov. 1 – GreenTech Automotive, Inc. obtained court approval of the bid procedures for the sale of its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, the company filed a plan of liquidation in July under which its assets will be transferred to a subsidiary of GreenTech, whose manager will be Shenzen Jin Hong Yuan Investment Management Co., Ltd., also known as Golden Resources.

If the subsidiary is not ultimately the high bidder for the assets, GreenTech will pay it a $150,000 break-up fee.

Thursday’s order said the bid deadline and auction date will be set after GreenTech files an amended Chapter 11 plan and related disclosure statement, as will the plan confirmation hearing date.

Competing bids must be for at least $50.1 million, which is equal to the $50 million stalking horse bid cash consideration amount and a $100,000 overbid amount.

The minimum overbid amount at auction will be $100,000. The minimum overbid amount for the sale of individual asset lots will be $25,000.

GreenTech is a Sterling, Va.-based electric vehicle manufacturer. The company filed for bankruptcy on Feb. 26 under Chapter 11 case number 18-10651.

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