The U.S. Bankruptcy Court issued an order approving Bon-Ton Stores’ motion for the sale of property free and clear of liens; approving certain bidding procedures, assumption and assignment procedures and the form and manner of notice thereof; approving the asset purchase agreement (APA) and authorizing the sale of all or substantially all of the Debtors’ assets free and clear of all encumbrances.
According to a corporate release, the approved APA is between the Company and a joint venture composed of the holders of the Company’s 8.0% Second Lien Secured Notes due 2021 and Great American Group and Tiger Capital Group. Under the APA, the joint venture group will acquire the inventory and certain other assets of the Company. The joint venture was the winning bid in an auction held pursuant to Section 363 of the U.S. Bankruptcy Code.
The release notes, “The Company is committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on associates, customers, vendors and the communities we serve. The Company’s stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates will remain open throughout the store closing sales.”
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