Local Corporation filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on October 5, 2015. The debtor seeks the Court's approval for the sale of substantially all its assets to Media.Net Advertising FZ-LLC, the stalking horse bidder, for a purchase price of $3 million pursuant to the asset purchase agreement. To qualify as a qualified bidder, interested parties should submit their bids by bid deadline date which is 2 business days before the sale motion hearing, 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 a break-up fee of 3.5% of the Stalking Horse Bid, and expense reimbursement of $0.15 million. 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 2 business days prior to the sale motion hearing. 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. The court shall conduct the sale motion hearing 30 days from the date of the hearing on this procedures motion or such date immediately thereafter that is convenient to the court. A hearing on the Procedures Motion will be held on October 15, 2015.

Garrick A. Hollander and Marc Winthrop of Winthrop Couchot acted as legal advisors and Siemer & Associates as investment banker for debtor. Jeffrey A. D. Cohen of Womble Carlyle Sandridge & Rice, LLP and Ashley McDow of Baker Hostetler acted as legal advisor for Media.Net Advertising FZ-LLC.