A Nevada bankruptcy judge approved the $15 million sale of Xyience Inc. Tuesday after rejecting a last-minute offer for $15.5 million.
The Las Vegas Review-Journal reported that Judge Mike Nakagawa rejected the bid from Medici Group Holdings of New Zealand because the company failed to meet the bidding deadline. The Journal reported that the company called 90 minutes before the hearing and failed to send a representative to the court room.
Jim Morgan, the attorney for Xyience’s unsecured creditors, urged the judge to accept the larger offer, the Journal reported, saying that it represented a better deal for the company’s estate.
Manchester Consolidated Corp., whose offer was approved, will pay $200,000 in cash and assume $14.8 million in debt, the Journal reported. Medici reportedly offered $15.5 million in cash.
Morgan also asked the judge to delay the sale of Xyience for two days to give another potential bidder time to respond, but Greg Garman, an attorney for Zyen, opposed the delay. The Medici offer should not be considered because they failed to meet bid requirements and make a deposit, he said.
“All we have is a ghost (bidder),” Garman said.
His client, Zyen, stands to benefit from the sale. The company – controlled by Frank and Lorenzo Fertitta – signed Xyience as a sponsor of the Ultimate Fighting Championship, which the Fertittas also own.
Zyen extended two loans to Xyience totaling $14.7 million ahead of the sale. The Journal reported that the terms of those loans gave Zyen the right to recover debt before other creditors.