The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of HyreCar, Inc. on March 17, 2023. The Court approved the asset purchase agreement between the debtor and Holmes Motors, Inc., the stalking horse bidder, for the sale of substantially all its assets for a consideration consisting of assumed liabilities, full and final satisfaction of all secured obligations under, and as defined in, the DIP credit agreement, cash at closing in the amount of $7.75 million minus the aggregate amount of all liquidated, non-contingent amounts owed under the DIP credit agreement as of the closing date minus the aggregate amount of seller-responsible vendor liabilities as of the closing date pursuant to the asset purchase agreement, dated March 2, 2023. To qualify as a qualified bidder, interested parties should submit their bids by May 4, 2023.

The initial minimum overbid should be in the amount of at least $8.21 million. If the debtor receives any qualified bids, then it would hold an auction for its assets on May 8, 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 $0.23 million and expense reimbursement of $0.13 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for May 10, 2023.