The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of certain assets of FedNat Underwriters, Inc. on March 10, 2023. The Court approved the asset purchase agreement between the debtor and NSI Insurance Group, LLC the stalking horse bidder, for the sale of certain assets for a purchase price of $2 million in cash. To qualify as a qualified bidder, interested parties should submit their bids by March 23, 2023.

The initial minimum overbid should be in the amount of $0.10 million more than the initial purchase price. If the debtor receives any qualified bids, then it would hold an auction for its assets on March 24, 2023. At the auction, the subsequent bids would be in increments of $0.05 million.

The stalking horse bidder would be entitled to a break-up fee of 3.5% of the winning bid amount and expense reimbursement in case of termination of the asset purchase agreement. The sale hearing is scheduled for March 28, 2023.