People's Choice Home Loan asset sale bid procedures approved

By Caroline Salls

Pittsburgh, April 5 - People's Choice Home Loan, Inc. obtained court approval of the bid procedures for a sale of its assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the Central District of California.

The company also received court approval to retain Friedman, Billings, Ramsey & Co., Inc. as its investment adviser in connection with the sale.

The assets to be sold include the company's sub-servicing rights and its residual and other interests in seven securitized trusts.

Each offer must include a $100,000 deposit.

The initial minimum bid must be equal to the purchase price named in an eventual stalking horse bid, plus 1% and a break-up fee of 3% of the purchase price.

Subsequent bids must be in increments of at least 0.25% of the purchase price.

The auction is scheduled for April 17, and the sale hearing will be held April 19.

People's Choice, an Irvine, Calif., non-prime mortgage lender, filed for bankruptcy on March 20. Its Chapter 11 case number is 07-10765.

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