-
-
-
-
After a two-day auction that concluded Tuesday evening, the Bon-Ton debtors selected the joint credit liquidation bid submitted by second lien noteholders and Great American/Tiger Capital Group as the best and highest bid, as reported earlier this evening. Great American is an affiliate of second lien noteholder B. Riley Financial.

The aggregate purchase price of the bid was $775.5 million which would pay down the ABL facility and includes a credit bid and a wind-down budget of $93.8 million, according to sources. Of the bid, $8 million will go to rent and $2 million will go to pre-bankruptcy 20-day claims, sources add. In addition, the bid will pay the debtors’ full calculation of employee severance, according to sources. Professional fees of $15.8 million will be paid from the wind-down budget, sources add.

The acquired assets included preference claims, at least certain of which will not be pursued in the case, sources say.

At the auction, the second lien noteholders were represented by Jones Day, both Tiger and Great American were represented by Lowenstein Sandler, the unsecured creditors committee was represented by Pachulski Stang and the debtors were represented by Paul Weiss.

Bon-Ton will seek approval of the bid from Judge Mary Walrath at the debtors’ sale hearing scheduled to begin tomorrow, April 18, at 10 a.m. ET.

The parties gathered at the offices of debtors’ counsel Paul Weiss on Monday at 10 a.m. ET and spent the majority of the day in breakout rooms negotiating and finalizing bids before going on the record to begin the auction late on Monday evening, as previously reported. Only the second lien noteholders’ bid and the Hilco / Gordon Brothers JV bid went forward in the auction.

The parties returned to the offices of debtors’ counsel at 9 a.m. ET today and returned to breakout rooms for the majority of the day, going back on the record in the evening to resume the auction, according to sources.

The debtors have not yet filed a notice disclosing their selection of the winning bid at today’s auction.