Tower Records bid procedures approved for intellectual assets sale

By Caroline Salls

Pittsburgh, March 1 - Tower Records obtained court approval of the bidding procedures for the proposed sale of its intellectual assets, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the intellectual property assets include the company's trademarks, international licenses and web site business, including Tower.com.

The auction is scheduled for March 15, with the sale hearing to be held March 19.

Consor Intellectual Asset Management will manage the marketing and sale of the intellectual assets.

Under the bid procedures, offers to buy any or all of the intellectual assets are due March 12.

Tower Records said it will decide if any purchase offer warrants status as a lead bid for the assets.

If the lead bidder is not the high bidder at auction, Tower Records will pay it a break-up fee.

The sale must close by March 20, according to the motion.

Tower is a subsidiary of Sacramento, Calif.-based MTS Inc. The company filed for bankruptcy on Aug. 20, 2006. Its Chapter 11 case number is 06-10886.

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