Ultimate Electronics CEO Wattles offers $47 million for firm

By Ted A. Knutson

Washington, April 15 - Ultimate Electronics, Inc. chairman and chief executive officer Mark Wattles is offering to buy the firm for $43.6 million in cash and a promissory note of $3.5 million and the assumption of liabilities.

Wattles made the announcement in a 13-D filing with the Securities and Exchange Commission.

In the filing, Wattles said the firm's official committee of unsecured creditors told him orally Thursday it would support the bid, absent a higher offer.

Ultimate's chairman and CEO currently holds 47.9% of the 62-store electronic retailer's stock.

The buyout would be done via a new Wattles company, Ultimate Acquisition Partners, LP.

Wattles added an asset purchase agreement for Ultimate may be terminated by Ultimate Acquisition if the closing does not take place by April 20.

An auction was held for the inventory at all 62 of the Thornton, Colo. electronic chain's stores.

The results of the auction were not available by press times.

Ultimate Electronics filed for Chapter 11 on Jan. 11 with U.S. Bankruptcy Court for the District of Delaware.

Its case number is 05-10104

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