The U.S. Bankruptcy Court approved Ironclad Performance Wear’s emergency motion for an order approving the form of an asset purchase agreement for stalking horse bidder Radians Wareham Holding and for prospective over-bidders to use; approving the auction sale format, bidding procedures and stalking horse bid protections; approving the form of notice to be provided to interested parties and scheduling a Court hearing to consider approval of the sale to the highest bidder.
As previously reported, “The principal terms of the APA are summarized as follows: Purchaser will be paying a cash purchase price of either $15 million or $20 million depending upon the occurrence of an event which is sensitive and is the subject of a motion the Debtors are filing under seal, which the Debtors hope will be granted by the Court. It should be noted that the Debtors believe the total debt in these cases (both secured and unsecured combined) is or will be in the range of approximately $8-$10 million, which means that all creditors are expected to be paid in full with there being a substantial distribution to the shareholders of the parent company, which is a publicly traded company. Purchaser has deposited $1 million cash with Debtors’ bankruptcy counsel which Purchaser will forfeit to the Debtors’ estates if Purchaser elects not to proceed with its purchase of the Purchased Assets.”
In addition, “The Debtors’ proposed sale to Purchaser is subject to overbid with a minimum proposed overbid of at least $750,000 or any higher figure which is wholly divisible by $250,000. The Debtors’ proposed subsequent bidding increments will be $250,000 or higher figures which are wholly divisible by $250,000. The proposed break-up fee to Purchaser is $500,000.”
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