Pacific Sunwear auction canceled; assets will be sold to term lenders

By Caroline Salls

Pittsburgh, June 20 – Pacific Sunwear of California, Inc. will seek approval to sell its assets to entities created by its term loan lenders, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company said no other bids were received by the deadline. As a result, the June 22 auction was canceled.

As previously reported, competing bids were required to at least provide for enough cash to pay all debtor-in-possession financing, ABL and term loan claims in full, enough cash to fund an amount determined by the company, the DIP agent and the term loan lenders to pay all administrative and priority claims through the plan effective date, enough cash to fund a general unsecured claims recovery pools and a $500,000 initial minimum overbid amount.

Based in Anaheim, Calif., Pacific Sunwear is a specialty retailer of action sports-inspired casual apparel, accessories and footwear for teens and young adults. The company filed for Chapter 11 on April 7 under case number 16-10882.

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