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Tweeter bid procedures approved for going concern, Tivoli stock sales
By Caroline Salls
Pittsburgh, June 27 - Tweeter Home Entertainment Group, Inc. obtained court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.
Under the bid procedures, Tweeter will offer termination fees of 3% of the purchase price to two bidders, as it has received overlapping stalking horse bid proposals, and it asked the court to approve both as stalking horse bids.
The company said the first bid will allow it to continue as a going concern and includes the purchase of Tweeter's 18% stake in Tivoli Audio LLC.
The second bid is only for the purchase of the Tivoli stock, which the company said sets a significant floor for other bidders.
Tweeter Newco, LLC is the going concern stalking horse bidder, with a bid of $38 million.
Tweeter Newco will pay a $3.8 million deposit.
The initial overbid for the going concern sale must be for the purchase price, plus the amount of the break-up fee, plus $500,000.
Subsequent bids at auction must be made in increments of at least $250,000.
Bay Harbour Management LC and Whippoorwill Associates Inc. are the collective stalking horse bidder for the Tivoli stock, with a $10 million bid.
For the Tivoli stock auction, initial bids must be for at least $250,000 more than the proposed purchase price, together with the amount of the termination fee, and subsequent bids must be made in increments of $250,000.
The final sale hearing will be held July 13.
Tweeter, a Canton, Mass., consumer electronics retailer, filed for bankruptcy on June 11. Its Chapter 11 case number is 07-10787.
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