iSun, Inc. filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on June 7, 2024. The debtor seeks the Court?s approval for the sale of substantially all its assets to Clean Royalties, LLC, the buyer, for a purchase price of $10 million in cash plus assumption of the Assumed Liabilities plus payment of the Cure Payments pursuant to the asset purchase agreement, dated June 7, 2024. To qualify as a qualified bidder, interested parties should submit their bids by July 8, 2024, along with good-faith deposit in the amount of 10% of the bid price.

The initial minimum overbid should be at least $1 million more than the initial purchase price. The debtor has scheduled an auction on July 15, 2024. At the auction, the subsequent bids would be in increments of $0.25 million.

The stalking horse bidder would be entitled to a break-up fee of 5% of the purchase price and expense reimbursement of $0.25 million in case of termination of the asset purchase agreement. If Clean Royalties, LLC is not the Successful Bidder and an alternative transaction on a sale of the debtor?s assets occurs, then, out of the closing proceeds payable to the Prepetition Lender on account of its secured claim, Clean Royalties, LLC will share in a portion of those recoveries more than $6 million pursuant to the agreement between Decathlon Growth Credit, LLC and Clean Royalties, LLC. The sale hearing is scheduled for July 22, 2024.

The buyer is represented by Megan Adeyemo of Gordon Rees Sully Mansukhani, LLP as its legal advisor.