Aeropostale filed with the U.S. Bankruptcy Court a motion for (i) an order approving bidding procedures for the sale of the Visa/MasterCard (MC) litigation claim and scheduling a hearing; (ii) an order approving the sale of the Visa/MasterCard litigation claim free and clear of all liens, claims, encumbrances and other interests and (iii) an order approving the rejection of the spectrum contract.
The motion explains, “Specifically, the purchase price in the Stalking Horse Agreement is for $1,000,000 (the ‘Purchase Price’), which shall be payable by the Stalking Horse Buyer in its entirety at Closing and be distributed to the Debtors in accordance with the terms of the Stalking Horse Agreement….Critical to the Stalking Horse Buyer’s Agreement, the Debtors have agreed to pay the Stalking Horse Buyer, subject to Court approval, in accordance with section 2.2 of the Stalking Horse Agreement, $30,000 (3.00% of the Purchase Price) (the ‘Break-Up Fee’) upon the consummation of an Alternative Transaction.” The motion continues, “To participate in the Bidding Process, each potential bidder, other than the Stalking Horse Buyer, must deliver…written offer, so as to be received by no later than February 9, 2018.”
In addition, “The Debtors are authorized to conduct an auction of the Visa/MC Litigation Claim (the ‘Auction’) if the Debtors receive, in addition to the Stalking Horse Agreement, either (a) one or more individual Qualified Bids for the Visa/MC Litigation Claim for which the purchase price of the Qualified Bids exceeds $1,050,000. If the Auction is held, it shall take place on February 12, 2018….The hearing to approve the sale of the Visa/MC Litigation Claim to the Prevailing Purchaser is proposed to be scheduled to take place on February 15, 2018.”
The Court scheduled a January 30, 2018 hearing on the motion, with objections due by January 23, 2018.
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