First Guaranty Mortgage gets approval of bid procedures for assets

By Sarah Lizee

Olympia, Wash., Sept. 29 – First Guaranty Mortgage Corp. received court approval of the bid procedures for substantially all of its assets, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

The company also received court approval to choose one or more stalking horse bidders. Bid protections include an up to 3% breakup fee, as well as an expense reimbursement.

The company has until 4 p.m. ET on Oct. 14 to choose stalking horse bidders.

The cash flow debtor-in-possession lender and DIP repo guarantor are allowed to submit credit bids.

Bids are due by 4 p.m. ET on Oct. 20.

An auction, if needed, will be held on Oct. 25.

A sale hearing will take place on Oct. 31.

The Plano, Tex.-based mortgage lender filed Chapter 11 bankruptcy on June 30 under case number 22-10584.

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