RentPath closes $608 million sale to Redfin; plan effective April 2

By Sarah Lizee

Olympia, Wash., April 5 – RentPath Holdings, Inc. completed the sale of its assets to Redfin for $608 million in cash, according to a press release from Redfin issued Monday.

The debtors had conducted a marketing process for their assets and designated stalking horse bidder CoStar Group, Inc. as winning bidder, and RentPath NewCo as back-up bidder.

Later, RentPath terminated the stalking horse agreement and executed a third-party asset purchase agreement with Redfin.

If the debtors had been unable to complete the sale to Redfin, they would have sought approval to sell the assets to RentPath NewCo under a credit bid.

In addition, the company’s Chapter 11 plan went into effect on April 2, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on March 31, as previously reported.

Under the plan, debtor-in-possession claims will be paid in full in cash.

Professional fee claims and priority tax claims will be paid in full.

Priority non-tax claims will either be paid in full or will be reinstated.

Holders of other secured claims will receive payment in full in cash, have their claims reinstated or receive the collateral securing their claims.

Holders of first-lien claims will receive their pro rata share of the sale proceeds less the second-lien claims recovery cash pool and second-lien sale distribution recovery.

If holders of second-lien claims voted to accept the plan, holders will receive their pro rata share of the second-lien claims recovery cash pool and the second-lien sale distribution recovery. If holders voted to reject the plan, they will receive their pro rata share of the sale proceeds after first-lien claims are paid in full.

If holders of general unsecured claims voted to accept the plan, holders will be paid in full or receive treatment rendering their claims unimpaired. If holders of general unsecured claims voted to reject the plan, holders will receive their pro rata share of the sale proceeds after first-lien and second-lien claims are paid in full.

Intercompany claims will be adjusted, continued, settled, reinstated, discharged or eliminated.

Section 510(b) claims will be extinguished and holders will not receive any distribution.

Intercompany interests will be canceled or reinstated.

Parent equity interests will be canceled with no distributions to holders.

RentPath is an Atlanta-based vertical search company for apartment and home renters. The company filed bankruptcy on Feb. 12, 2020 under Chapter 11 case number 20-10312.

© 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.