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Cinram secures Canadian court approval for $82.5 million asset sale
By Caroline Salls
Pittsburgh, July 12 - Cinram International Income Fund said the Ontario Court of Justice has approved the sale of substantially all of the company's assets and business in the United States, Canada, the United Kingdom, France and Germany to newly formed subsidiaries of Najafi Cos.
According to a company news release, the sale is subject to recognition and approval by the U.S. Bankruptcy Court for the District of Delaware. A hearing is scheduled for July 25.
As previously reported, the Najafi units have agreed to pay a total of $82.5 million for the Cinram assets under the name Cinram Acquisition, Inc.
Under the sale transaction, Najafi will purchase substantially all of the assets used in Cinram's core businesses for the manufacture of pre-recorded multimedia products and the provision of related logistics, digital media and outsourced vendor management inventory services in North America and substantially all of the European business.
The sale is expected to close in August, although the transfer of portions of the business may occur later in the year, the release said.
In addition, Cinram said it has received written support from lenders representing 100% of the loans outstanding under its first-lien credit facilities and lenders representing about 98% of the loans outstanding under its second-lien credit facility.
"This is a significant milestone in our progress towards completion of the sale transaction and the strengthening of Cinram's competitive position," Cinram chief executive officer Steve Brown said in the release.
Cinram, a Toronto-based provider of pre-recorded multimedia products and related logistics services, filed for bankruptcy on June 25. Its Chapter 15 case number is 12-11882.
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