Levitz Furniture asset sale bid procedures approved

By Caroline Salls

Pittsburgh, Nov. 21 - Levitz Furniture obtained court approval of the bid procedures for the sale of substantially all of the company's assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Because of the immediate nature of the company's liquidity crisis, Levitz said it decided to hold an auction for its assets without first securing a stalking horse bid.

If the company does decide to go with a stalking horse bid, that bidder would be paid a 3% break-up fee if it is not the high bidder at auction.

Levitz said it will select a baseline bid as soon as possible, and competing bids at the auction must be made in increments of at least $100,000.

All bids must include a 10% deposit.

According to the bid procedures order, YA Global Investments, LP will be entitled to credit bid at the auction, and it is not required to post a deposit.

The auction will be held Nov. 28, and the sale hearing is scheduled for Nov. 29.

Levitz, a New York-based specialty retailer of furniture, bedding and home furnishings, filed for bankruptcy on Nov. 8. Its Chapter 11 case number is 07-13532.

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