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Nine West Holdings Bid Procedures Approved

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The U.S. Bankruptcy Court issued an order approving Nine West Holdings’ motion (i) approving bidding procedures and procedures for the assignment and assumption of executory contracts and (ii) an order approving the sale of substantially all assets of the Debtors’ Nine West and Bandolino and authorizing the Debtors to enter into and perform obligations under the asset purchase agreement.

The order states, “The Debtors have demonstrated a compelling and sound business justification for authorizing the payment of the break-up fee equal to $6,000,000 (the ‘Break-Up Fee’) and the expense reimbursement of up to $750,000.” The order approves the following general timeline: June 4, 2018 deadline to submit qualified competing bids; an auction, if necessary, would be conducted on June 8, 2018 followed by a June 18, 2018 sale hearing.

As previously reported, “The Debtors and their advisors discussed the potential sale of the Nine West and Bandolino brands with more than 50 potential buyers. Over the course of approximately nine months, the Debtors engaged interested parties on a potential sale before reaching agreement on a letter of intent with Authentic Brands Group LLC (‘ABG’) on January 17, 2018, which provided ABG with the exclusive right to negotiate an asset purchase agreement that would allow ABG to act as a stalking horse bidder in the sale of the Nine West, Bandolino, and associated brands. Since that time, the Debtors engaged in hard-fought negotiations with ABG on the terms of an asset purchase agreement. These negotiations resulted in an asset purchase agreement (the ‘Stalking Horse APA’), dated April 5, 2018, among Debtors Nine West Holdings, Inc. and Nine West Development LLC and an entity affiliated with ABG, ABG-Nine West, LLC (the ‘Stalking Horse Bidder’) ….The Stalking Horse Bidder will (i) pay to the Debtors an amount in cash equal to the sum of (A) $200,000,000, plus (B) the amount, if any, by which the Estimated NWC Assets exceeds the Target NWC Assets, minus (C) the amount, if any, by which the Target NWC Assets exceeds the Estimated NWC Assets, minus (D) $325,000, minus (E) the Estimated To-Be-Authorized Deductions and Allowances Amount, minus (F) the Estimated Buyer Prepaid Royalty Amount.”

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The post Nine West Holdings Bid Procedures Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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