A buyer has been found for Xyience in its bankruptcy proceeding.

On Feb. 22, Xyience entered into a preliminary purchase agreement with Manchester Consolidated Corporation. Under terms of the agreement, Manchester will pay $15,017,000 for the company -- $200,000 in cash to Xyience plus the assumption of $14.8 million in secured debt held by Zyen, LLC.

However, the agreement is subject to a competitive bidding process that will culminate in a court auction on April 1, provided other qualified bidders express interest in purchasing Xyience.

Zyen has reserved the right to bid at the auction. Several shareholders have speculated that the Fertitta-controlled company will ultimately purchase Xyience at the auction.

Xyience's debt obligations to Zyen and Zuffa both mature on April 22. The terms of the Zuffa loan require payment in full upon closing if the company is sold on or before April 22.

Sherdog.com recently obtained promotional materials used to solicit bids on the company.

According to a letter dated Feb. 12, Xyience is "one of the fastest growing brands in the health related category utilizing advanced science in the development of nutritional products and supplements necessary for maintaining a dynamic lifestyle. Based in Las Vegas, the Company's offerings include energy drinks and nutritional supplements."

The solicitation also touts the company's "strategic partnership marketing relationship with the UFC, one of the fastest growing sports and the second most popular sporting event for 18-34 year old males behind the NFL."

Documents obtained by Sherdog.com state that Xenergy is available in more than 15,000 stores in the United States and Canada and is ranked in the top 10 of all energy drinks sold in convenience stores by Aisle Master Ranking table.

The solicitation says that energy drinks are the fastest growing segment of the beverage industry, with sales of $3.8 billion in 2006 and $7.6 billion in sales projected in 2011. The sports nutrition market as a whole is a $22.5 billion business with a four-percent annual growth rate, according to the documents.

Xyience stated that it had $20 million in net sales in 2006 and 2007, with 30 percent and 39 percent respective gross margins.

The company filed for Chapter 11 bankruptcy Jan. 18 following a tumultuous period of missed payments to sponsored fighters, constant turnover in corporate leadership, shareholder discontent and rumors of insolvency. At the time of its bankruptcy filing, Xyience was $42,342,831 in debt, with just $5,285,722 in assets.

Xyience remains the subject of a bitter shareholder dispute, with civil litigation concerning the company's alleged mismanagement pending in Nevada state court. Last month a dissident shareholder group attempted to block separate agreements between Xyience and Zyen and Zuffa respectively.

Adam Swift is the Editor of MMAPayout.com and a frequent contributor to Sherdog.com.

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