The U.S. Bankruptcy Court approved PFO Global’s motion for an order approving an asset purchase agreement; authorizing the sale of substantially all assets of the Debtor free and clear of all liens, claims, encumbrances and other interests and authorizing the Debtor to consummate all related transactions.
Hillair is the stalking horse bidder, and the purchase price is $7,500,000 (in the form of a credit bid of the purchaser’s existing secured debt plus any D.I.P. loan advances) plus assumed liabilities.
As previously reported, “After considering the status of the Debtors’ operations, the lack of funds with which to operate other than funds provided by the Hillair Facility , and all other relevant factors, including the competition in the industry, Debtors’ management has concluded that it is in the best interest of Debtors’ bankruptcy estates and their creditors to sell substantially all their assets pursuant to a proposed bidding procedure.”
In addition, “The Debtors have entered into , subject to higher and better offers, and approval of the Bankruptcy Court, a Term Sheet with Hillair….The Debtors propose to solicit bids, conduct an auction and have the Sale approved on the following time line: the deadline to submit Qualified Bids shall be March 20, 2017; if one or more Qualified Bids is received, the Debtor will conduct the Auction on March 27, 2017; and the Sale Hearing, to approve the results of the Auction, will be on April 3, 2017….The Debtors will use their best efforts to secure offers for both a going concern sale and a liquidation sale or sales of the Debtor’s assets, in order to maintain maximum optionality and maximize value. Any single bid or a combination of bids, individually or in the aggregate, for the Debtors assets must exceed any going concern bid by $270,000.”
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