DirectBuy Holdings auction cancelled following several postponements

By Caroline Salls

Pittsburgh, Feb. 10 – DirectBuy Holdings, Inc. said the auction for substantially all of its assets has been cancelled.

According to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware, the auction and bid deadline were adjourned several times.

No reason was given for the ultimate cancellation.

As previously reported, the company entered into a stalking horse agreement with Derby SPV, Inc., an entity formed at the direction of the holders of its pre-bankruptcy notes.

The proposed purchase price is comprised of a $10 million payment, plus cure amounts, all amounts payable under proposal proceedings and the assumption of liabilities.

The assumed liabilities include member purchase orders, accounts payable, specified claims, taxes and employee obligations.

In an objection filed in December, the official committee of unsecured creditors appointed in DirectBuy’s case said the committee said the company was looking to rush through a sale of substantially all of its assets to a buyer that is controlled by the pre-bankruptcy secured parties and also owns equity in the company.

The committee said the sale process “entirely precludes any competitive offers.”

DirectBuy is a Merrillville, Ind.-based members-only showroom and home design center that offers merchandise at manufacturer-direct prices. The company filed bankruptcy on Nov. 1 under Chapter 11 case number 16-12435.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.