Optima Specialty Steel filed with the U.S. Bankruptcy Court a (a) motion for the sale of property free and clear of liens, claims, encumbrances and other interests – except for permitted exceptions of certain real property and related personal property located in Buffalo, NY and owned by Debtor Niagara LaSalle – as a private sale and (b) authorizing the lease-back by the Debtors upon the terms and conditions of the lease, the partial building lease of certain storage and office space within the property.
The motion explains, “The Debtors seek authority to sell the Property for approximately $1.75 million to 222 Chicago Street, (the ‘Purchaser’), and to enter contemporaneously into the Partial Building Lease with the Purchaser….The Debtors believe that the Purchaser’s offer to enter into the Buffalo Transaction is the highest and best consideration the Debtors are likely to receive for the Property….The Purchaser is required to consummate the Buffalo Transaction by April 11, 2017 (the ‘Purchaser Deadline’). The Purchaser Deadline arises from the fact that the Purchaser is entering into the Private Sale as part of a like-kind exchange under section 1031 of the Internal Revenue Code (the ‘Section 1031 Exchange’).”
In addition, “Reflecting the Purchaser’s commitment to the Buffalo Transaction, the Purchaser is committed to closing the Private Sale and the Buffalo Lease subject only to entry of the Sale Order and to a termination right pending the outcome of an environmental inspection, which must be exercised no later than April 6, 2017….An Additional Consideration of 10-year lease of 25,000 square feet of warehouse space, plus additional office space, in the Building. The Purchaser has or will submit a deposit in the amount of $25,000 within 2 business days of the Effective Date of the Sale Contract.”
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