Matchbox Food gets court approval of bidding procedures for assets

By Sarah Lizee

Olympia, Wash., Oct. 7 – Matchbox Food Group, LLC obtained approval of an asset purchase agreement and bidding procedures in connection with the sale of substantially all of its assets, according to an order filed Wednesday in the U.S. Bankruptcy Court for the District of Maryland.

As previously reported, Matchbox has entered into an asset purchase agreement with Thompson Hospitality Corp., under which the purchaser has agreed to make a one-time payment of $11.55 million, subject to adjustment.

Additionally, the purchaser has agreed to pay a consulting fee in the amount of $550,000 at closing.

The sale agreement has some contingencies, including approval within 45 days of the effective date, subject to optional extension, and closing occurring by Nov. 17.

If Thompson is not ultimately the highest bidder, Matchbox will pay a breakup fee of $346,500.

Initial competing bids must be greater than or equal to the $11.55 million consideration, plus the breakup fee and an initial overbid amount of $250,000, with increments of at least $250,000 after that.

Bids are due by 5 p.m. ET on Oct. 14.

An auction, if necessary, is scheduled for Oct. 16.

A sale hearing is scheduled for Oct. 26.

Matchbox is a Reston, Va.-based restaurant operator. The company filed Chapter 11 bankruptcy on Aug. 3 under case number 20-17250.

© 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.