C International granted U.S. approval for $7 million property purchase

By Kali Hays

New York, April 9 - Cinram International ULC, the foreign representative of C International Income Fund, formerly Cinram International Income Fund, obtained United States court recognition and approval of the company's $7 million Canadian sale order and purchase agreement for a Pennsylvania property, according to an April 9 order with the U.S. Bankruptcy Court for the District of Delaware.

The Canadian Court approved the sale and purchase sale agreement between CMFG LLC and Cinram Property Group, LLC on April 2.

As previously reported, under the sale agreement, Cinram will purchase 109.92 acres of land in Pennsylvania that includes about 1.09 million square feet of industrial buildings for $7 million.

The agreement also includes a waiver from Signet Leasing and Financial Corp. and WEA Manufacturing transferring all equipment on the property to Cinram free and clear of all liens.

Though the broker of the property, Cushman & Wakefield of Pennsylvania, Inc., did receive a last-minute bid from an interested party that was more than Cinram's bid, it included a five-month study period, and the companies agreed that Cinram's bid "is the best in the circumstances" and "the most logical" considering its short 13-day study period and the payment of $600,000 in non-refundable deposits, according to the motion.

Cinram also said "the debtors syndicate of secured lenders, who are the only parties with an economic interest in the proposed sale, are supportive of the proposed sale over the last minute contingent bid" and that "the proposed sale is the best option."

The court agreed, stating the sale "represents the best and most certain offer for the property available to maximize the benefits to the debtors and their creditors" and that "further marketing or a public auction will not materially improve the terms of the sale, and a private sale is warranted under the circumstances," according to the order.

Cinram, a Toronto-based provider of pre-recorded multimedia products and related logistics services, filed for bankruptcy on June 25, 2012. Its Chapter 15 case number is 12-11882.

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