The U.S. Bankruptcy Court approved DirectBuy Holdings’ motion for orders (i) approving a stalking horse asset purchase agreement and procedures in connection with the sale of all or substantially all of the Debtors’ business assets, scheduling the related auction and a hearing to consider approval of sale and (ii) authorizing the sale of all or substantially all of the Debtors’ business assets free and clear of liens, claims and interests.
As previously reported, “The purchaser is Derby SPV, and the purchase price is $10,000,000, plus cure amounts with respect to the assumed contracts plus amounts payable under the Canadian proposals plus the assumption by the purchaser of assumed liabilities…The Debtors intend to conduct an open auction process if one or more Qualified Bids are received. Of the purchase price, $10 million is a credit bid and the rest of the funds will be used to satisfy the enumerated obligations under the Purchase Agreement.”
Court-filed documents continue, “The Debtors have agreed that if the Purchaser is not the Successful Bidder and an Alternate Transaction closes, the Debtors will pay the Purchaser the Expense Reimbursement, an amount in cash equal to the aggregate amount of the reasonable, actual and necessary, out-of-pocket expenses paid or incurred by the Purchaser relating to or in connection with their bid, subject to a cap of $500,000. Bidding at the Auction will begin with the starting Bid and continue in bidding increments providing a net value to the estate of at least an additional $200,000 above the prior bid.” The Court scheduled a January 24, 2016 hearing to consider the sale procedures, auction date and sale hearing.
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