The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Local Corporation on October 22, 2015. The Court approved the asset purchase agreement between the debtor and Media.Net Advertising FZ-LLC, the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $3 million in cash. To qualify as a qualified bidder, interested parties should submit their bids by November 13, 2015, along with a good faith deposit in the amount equal to 10% of the proposed purchase price.

The initial minimum overbid should be in an amount not less than $3.36 million which includes the initial overbid amount of $0.1 million, and a break-up fee of 3.5% of the stalking horse bid. If more than one qualified bid by a qualified bidder is received by the bid deadline, an auction with respect to a sale of the assets shall take place on November 17, 2015. At the auction, the subsequent bids would be in increments of $0.05 million.

Media.Net shall be entitled to a break-up fee in an amount of 3.5% of the stalking horse bid payable and expense reimbursement of $0.15 million if the successful bidder for the assets is not Media.Net. Sale hearing will be held on November 19, 2015.