MusclePharm Corporation. filed a motion in the US Bankruptcy Court for the sale of its subsidiary substantially all its assets on May 12, 2023. The debtor seeks the Court?s approval for the sale of its substantially all its assets through public auction.

To qualify as a qualified bidder, interested parties should submit their bids by July 6, 2023. The debtor has scheduled an auction on July 21, 2023. The stalking horse bidder would be entitled to a break-up fee of 2% and expense reimbursement of $0.05 million in case of termination of the asset purchase agreement.

The sale hearing is scheduled for August 9, 2023. The proceeds from the sale would be used to pay off the amount owed to the debtor?s pre-petition lender.