PJ Finance looks to conclude successful auction with 'no end in sight'

By Caroline Salls

Pittsburgh, Jan. 10 - PJ Finance Co., LLC asked the U.S. Bankruptcy Court for the District of Delaware to modify the procedures approved for its plan sponsor auction to allow the highly successful reopened auction to conclude after more than 34 hours of live bidding with "no end in sight," according to a Tuesday court filing.

The company said the auction process has resulted in bids "offering tremendously enhanced recoveries to the debtors estates and their creditors, but has yet to yield finality or closure."

Specifically, PJ Finance said the auction process has resulted in bids offering more than $110 million of net present value to creditors as compared to the original plan.

In addition, the company said the bids would allow it to submit a plan supported by Torchlight Loan Services, LLC and the official committee of unsecured creditors.

If bidding continues in its current fashion, PJ Finance said some bidders will likely lose interest and the overall enhanced recoveries to creditors will soon be outweighed by additional administrative expenses and continued delay and uncertainty.

According to the motion, the company has proposed that the final round of bids be due by 4 p.m. ET on the day after this motion is approved.

After that, PJ Finance would arrange a conference call for all bidders and parties to seek clarification or ask questions on the final bids. The bids would then be analyzed and the prevailing bid announced the next day.

The company said Waypoint Residential, LLC's round seven bid has been selected as the highest bid received so far when the reopened auction was further adjourned after nearly 17 hours of live bidding at 1:30 a.m. ET on Jan. 7.

PJ Finance is a Chicago-based owner of a portfolio of apartment communities in Arizona, Florida, Georgia, Tennessee and Texas. The company filed for bankruptcy on March 7, 2011 under Chapter 11 case number 11-10688.

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