Appvion filed with the U.S. Bankruptcy Court a motion for an order approving and authorizing bidding procedures in connection with the sale of substantially all assets, approving stalking horse protections and approving and authorizing the sale to a successful bidder free and clear of all liens, claims, encumbrances and other interests.
According to a corporate release, the stalking horse asset purchase agreement bid provides for a group of Appvion lenders to acquire substantially all of Appvion’s assets in the Section 363 sale process. The motion explains, “The assumption of Assumed Liabilities including, without limitation, the NM Term Loan Obligations, (ii) a credit bid an amount equal to 100% of the Obligations other than the NM Term Loan Obligations (the ‘Credit Bid’) and (iii) a cash payment to fund the Wind-Down Budget. Payment of (i) a break-up fee of 1.5% of the aggregate Purchase Price and (ii) reasonable out-of-pocket fees, costs and expenses of the Stalking Horse Purchaser incurred in connection with the preparation, negotiation, execution, delivery and performance of the Stalking Horse Purchase Agreement, subject to a cap of $500,000.”
Kevin Gilligan, C.E.O. of Appvion, explains, “After evaluating options to address our capital structure and conducting extensive negotiations with our lenders, we determined that a sale would be the best path forward for Appvion.” The Court scheduled a March 1, 2018 hearing to consider the sale procedures motion, with objections due by February 22, 2018.
Read more Appvion 363 sale news.