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NECCO Bid Procedures Approved

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New England Confectionery Company’s Chapter 11 trustee filed with the U.S. Bankruptcy Court an expedited motion to approve bidding and notice procedures and a breakup fee in connection with the Company’s motion for an order approving the private sale of substantially all Company assets free and clear of liens, claims, encumbrances and interests and to authorize the trustee to effectuate sale pursuant to terms of asset purchase agreement, as amended.

The motion explains, “The Trustee seeks approval of the Procedures in conjunction with a proposed sale of substantially all of the Debtor’s assets (the ‘Purchased Assets’) to CI-N Acquisition, LLC (the ‘Buyer’)….The Trustee requests the approval of the following bid procedures (the ‘Bid Procedures’) for use in the sale of the Purchased Assets: Competing bids may be submitted for: (i) the Purchased Assets in their entirety (an ‘Entireties Bid’), and/or (ii) one or more of the Product Lines or the CoGeneration Assets. Any Entireties Bid shall be deemed to qualify as a competing bid (a ‘Competing Bid’) only if: (1) the cash purchase price to be paid to Seller at closing is at least $13,961,900.18, which is equal to an amount $665,000 higher than the initial purchase price in the APA; and (2) the Competing Bid is accompanied by an executed asset purchase agreement substantially in the same form as the APA.”

In addition, “A bid for a Product Line shall be deemed to qualify as a Competing Bid only if such bid is in the minimum amount of $500,000 of cash to be paid to Seller at closing. A bid for the Co-Generation Assets shall be deemed to qualify as a Competing Bid only if such bid is in the minimum amount of $500,000 of cash to be paid to Seller at closing….An auction for all or any part of the Purchased Assets shall be held only if (i) there is an Entireties Bid that is a Competing Bid at the Bid Deadline, or (ii) if at the Bid Deadline one or more Product Line bids and/or Co-Generation Asset bids constitute a Competing Bid and the aggregate cash purchase price to be paid to Seller at closing by all Competing Bids at the Bid Deadline for the individual Product Lines and the Co-Generation Asset is at least $11,200,000. If no Auction is held because (x) at the Bid Deadline there is no Entireties Bid that is a Competing Bid, (y) at the Bid Deadline no Product Line bids or Co-Generation Asset bids constitute a Competing Bid, or (z) at the Bid Deadline the aggregate purchase price to be paid to Seller at closing by all Competing Bids for the individual Product Lines and the Co-Generation Asset is less than $11,200,000, then the Purchased Assets shall be sold to Buyer immediately after the Sale Hearing pursuant to the terms of the APA.”

The Court subsequently approved the bid procedures’ motion.

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The post NECCO Bid Procedures Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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