Archway asset sale bid procedures approved

By Caroline Salls

Pittsburgh, Nov. 18 - Archway Cookies LLC and debtor Mother's Cake and Cookie Co. obtained court approval of the bid procedures for the proposed sale of substantially all of their assets, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Archer Acquisitions LLC is the stalking horse bidder for the Archway assets, with a $25 million offer, while Madre Capital, Inc. is the stalking horse bidder for the Mother's Cake and Cookie assets, with a $5 million bid.

Archway is the indirect parent of Archer Acquisitions.

Competing bids are due by 4 p.m. ET on Nov. 25.

The auction will be held Dec. 1, and the sale hearing is scheduled for Dec. 2.

If Archer is not the high bidder for the Archway assets, Archway will pay it a $750,000 break-up fee and reimburse up to $200,000 of its expenses.

Meanwhile, if Madre is not the high bidder for the Mother's assets, it will receive a $150,000 break-up fee, plus an up to $50,000 expense reimbursement.

Competing bids for the Archway assets must be for at least $26.2 million, competing bids for the Mother's assets must be for at least $5.3 million, and joint bids for both groups of assets must be for at least $31.5 million.

All bids for the Archway assets must include a $1.5 million deposit, bids for the Mother's assets must include a $500,000 deposit, and joint bids for both groups of assets must include a $2 million deposit.

Archway, a Battle Creek, Mich., cookie company, filed for bankruptcy on Oct. 6. Its Chapter 11 case number is 08-12323.

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