Gordmans Stores filed with the U.S. Bankruptcy Court a motion to establish bidding procedures and approve the bid protections related to the disposition of certain assets free and clear of liens, claims, encumbrances and interests.
The Debtors have entered into a stalking horse agreement by and among the Debtors and a joint venture comprising of Tiger Capital Group and Great American Group (Stalking Horse Agent) for the liquidation of substantially all of the Debtors’ assets.
The motion notes, “The Debtors estimate that the guaranteed amounts under the Stalking Horse Agency Agreement will exceed $74 million and believe the consideration offered by the Stalking Horse Agent represents the highest and best value for the assets and that by coupling the Stalking Horse Agency Agreement with the Bidding Procedures….The Debtors will maximize stakeholder value… Despite having executed the Stalking Horse Agency Agreement, the Debtors will continue to pursue the highest and otherwise best bid possible for their Assets pursuant to the Bidding Procedures.”
The motion proposes the following general timeline: March 27, 2017 deadline to submit qualified competing bids; an auction, if necessary, would be conducted on March 27, 2017, followed by a March 30, 2017 transaction hearing. The Court scheduled a March 20, 2017 hearing to consider the bid procedures motion.
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