FedNat Underwriters, Inc. filed a motion in the US Bankruptcy Court for the sale of certain assets on February 27, 2023. The debtor seeks the Court's approval for the sale of its certain assets to NSI Insurance Group, LLC, the stalking horse bidder, for a purchase price of $2 million in cash pursuant to the asset purchase agreement, dated February 27, 2023. To qualify as a qualified bidder, interested parties should submit their bids by March 23, 2023, along with good-faith deposit in the amount of 10% of the bid price.

The initial minimum overbid should be at least $0.10 million more than the initial purchase price. The debtor has scheduled an auction 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 purchase price in case of termination of the asset purchase agreement. The sale hearing is scheduled for March 28, 2023, and sale closing shall occur on March 31, 2023.