Katy Industries filed with the U.S. Bankruptcy Court a notice of successful bidder and cancellation of the previously-scheduled auction. The notice states, “Pursuant to the Bid Procedures Order, the Bid Deadline was July 12, 2017 at 5:00 p.m. (Eastern Daylight Time), and that the only Qualified Bid as of the Bid Deadline was that of the Stalking Horse Purchaser (Jansan Acquisition). As such, no Auction will be conducted and the Stalking Horse Purchaser is deemed to be the Successful Bidder. The sale hearing will be held on July 17, 2017.”
According to the June 19, 2017 motion for the sale of substantially all of the Debtors’ assets, Jansan Acquisition, a newly created entity co-owned by Highview Capital and affiliate of Victory Park Management serves as administrative agent for the Company’s pre-petition second lien lender. Pursuant to the terms of the stalking horse agreement, Jansan Acquisition has agreed to purchase the assets in exchange for (i) the assumption of certain obligations; (ii) a credit bid of the amount outstanding under the proposed $7.5 million D.I.P. credit agreement; (iii) a credit bid of all outstanding amounts due and owing under the second lien credit agreement; and (iv) the assumption of certain additional liabilities.
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