| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for Penn Traffic Co. > News item |
Penn Traffic seeks approval for $85 million sale to Tops Market
By Lisa Kerner
Charlotte, N.C., Jan. 8 - Penn Traffic Co. filed an emergency motion with the U.S. Bankruptcy Court for the District of Delaware seeking approval for an $85 million "global sales transaction" with Tops Markets, LCC.
The court approved Penn Traffic's stalking horse agreement with Tops Markets, according to a Friday filing.
Penn Traffic said in its motion that it believes the proposed sale transaction with Tops "represents the best opportunity for the debtors' to maximize recovery to their creditors."
If the court approved the sale, Penn Traffic said it would not seek to close any of the other sale transactions sought in prior filings. Previously Penn Traffic sought court approved to sell its interest in 22 supermarkets to Price Chopper Operating Co., Inc. for $54 million.
Under the asset purchase agreement, Penn Traffic will pay a break-up fee of 3% of the cash portion of the purchase price if it completes an alternative transaction.
Tops will provide an earnest money deposit of $12.5 million.
The court approved bid procedures that require each bid to include a cash deposit in an amount equal to 14.7% of the cash portion of the total bid.
Each qualified bid will have an initial minimum bid requirement equal to the sum of the total consideration, the break-up fee and $1 million.
All subsequent bids must be made in increments of $250,000.
Bids must be received by noon ET on Jan. 19.
An auction, if necessary, will begin at 9 a.m. ET on Jan. 21.
A sale hearing will be held on or before Jan. 25.
Penn Traffic, a Syracuse, N.Y.-based company involved in retail and wholesale food distribution, filed for bankruptcy on Nov. 18. The Chapter 11 case number is 09-14078.
© 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.