Haggen Holdings requests approval of bid procedures, sale of assets

By Mark Reccek

Bethlehem, Pa., Nov. 10 – Haggen Holdings LLC requested court authorization of the bidding procedures and sale of company assets, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company is seeking approval to sell its most valuable store locations.

The company has begun to market the assets for sale to potential buyers, the motion indicated.

If a stalking horse bidder is selected, the company will pay it a break-up fee not to exceed 2% of the stalking horse purchase price and any expense reimbursement not to exceed 1% of the stalking horse purchase price if it is not ultimately the high bidder for the assets.

“The proposed sale process and transactions contemplated by this motion are reasonable and necessary under the circumstances of these Chapter 11 cases, as they will allow the debtors to realize the maximum value of their assets for the benefit of their estates and all stakeholders,” the motion said. “Accordingly, the sale represents the best opportunity for the debtors to preserve and enhance the overall value of their estates.”

The bid deadline is set for Jan. 6.

The auction is scheduled for Jan. 8, and the sale hearing is scheduled for Jan. 15.

A hearing on the sale motion is scheduled for Dec. 4.

Haggen, a Bellingham, Wash.-based supermarket company, filed bankruptcy on Sept. 8. The Chapter 11 case number is 15-11874.

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