Gas City: creamery assets to sell for $2.81 million or more at auction

By Lisa Kerner

Charlotte, N.C., March 8 - Gas City, Ltd. debtor The William J. McEnery Revocable Trust Dated 4/22/1993 had its bid procedures for the sale of its creamery assets approved, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The Trust owns seven ice cream stores in Illinois operated under the name "The Creamery" as well as related real property.

The assets, collectively known as the creamery assets, are leased and operated by McEnery Creamery, Inc., a non-debtor affiliate. The Trust owns all the shares of McEnery Creamery.

As previously reported, the Trust determined that the highest and best offer for the assets was received from WAM Creameries LLC, an Illinois limited liability company, which is owned by William A. McEnery, the son of William J. McEnery.

WAM and the Trust entered into a letter of intent for the sale of the real property for $2.81 million and the personal property for $165,000, or a total sale price of $2,975,000.

In addition, WAM agreed to provide a $30,000 deposit upon execution of a purchase agreement.

The Trust will accept qualified bids for the creamery assets through March 25 at noon EST that provide for a cash purchase price of at least $3,175,000.

Bids will continue in minimum increments of $10,000.

A sale auction, if necessary, will be held on March 28, and a sale hearing will be held on or before March 29.

Gas City, a gas station and truck stop operator based in Frankfort, Ill., filed for bankruptcy on Oct. 26. The Chapter 11 case number is 10-47879.

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