Bankruptcy auction set for US envelope maker NEC Holdings

July 23 (Reuters) - A U.S. bankruptcy judge on Friday approved the bidding procedures for envelope maker NEC Holdings Corp and scheduled an auction for the assets on Aug. 20.

Judge Peter Walsh also scheduled a sale hearing for Aug. 23, court papers showed.

Los Angeles-based private-equity firm The Gores Group, which is looking to buy NEC for $134.5 million, will be the stalking horse bidder for the assets and set the floor at the auction.

NEC also has a $140 million offer from rival Cenveo Corp (CVO.N).

The company and 27 affiliates filed for bankruptcy protection in June after three years of falling sales and rising losses.

Uniondale, New York-based NEC, which claims to be the largest privately held envelope maker in the United States, is the parent of National Envelope Corp.

The case is In re: NEC Holdings Corp, U.S. Bankruptcy Court, District of Delaware, No. 10-11890. (Reporting by Santosh Nadgir in Bangalore)