The U.S. Bankruptcy Court approved Ignite Restaurant Group’s emergency motion for entry of an order authorizing and scheduling an auction at which the Debtors will solicit the highest or best bid for the sale of substantially all of Debtors’ assets, approving bidding procedures related to conduct of the auction, approving the breakup fee, approving the form and manner of notices of the proposed sale of the Debtors’ assets, the auction and the sale hearing and approving the sale of its assets to stalking horse purchaser KRG Acquisitions or to the party submitting the highest or best bid.
As previously reported, “An accelerated process is warranted under the unique circumstances of these Debtors, because they have been evaluating and undertaking a sale process that started in the fall of 2016….[F]or important and pressing business reasons, any sale transaction must close on or before September 8, 2017, or the Stalking Horse Bidder may terminate the Agreement.” KRG Acquisitions’ stalking horse bid for the assets is $50 million, and any third party (other than the stalking horse purchaser) that is interested in acquiring the purchased assets must submit an initial overbid that provides for a purchase price in an amount equal to or greater than the sum of (1) the purchase price, (2) $1,500,000 (the breakup fee) and (3) $500,000 (the initial overbid amount).”
The order approves the following general timeline: an August 3, 2017 deadline to submit qualified competing bids and auction, if necessary, followed by an August 17, 2017 sale hearing.
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