Beyond Oblivion gets $2.4 million stalking horse bid from Nassau Music

By Jim Witters

Wilmington, Del., March 8 - Beyond Oblivion Inc. is seeking approval of Nassau Music, LLC as its stalking horse bidder with a $1.5 million cash bid for substantially all of the debtor's assets, according to documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The asset purchase agreement also calls for a $1.5 million unsecured note from Nassau that carries a 6% annual interest rate. The note is payable one year after the sale closing and is pre-payable without penalty.

The debtors' investment banker, BDO Capital Advisors, LLC, valued the total bid at $2.4 million.

Nassau is to pay a $150,000 deposit if the court approves it as the stalking horse bidder.

Nassau is affiliated with William Sword & Co., which will guarantee the purchase price, court documents state.

A hearing on approval of Nassau as the stalking horse bidder is scheduled for March 9.

Under the bid procedures approved by the court Feb. 10, Nassau would be entitled to a $50,000 expense reimbursement and a $72,000 breakup fee if the assets are sold to another buyer.

Any subsequent qualified bid must be at least $2,575,000.

The bid deadline is 4 p.m. ET on March 15.

The auction is scheduled for March 20, and the sale hearing date is March 26.

Closing on the sale is expected March 28.

Beyond Oblivion, a New York-based digital music company, filed for bankruptcy on Jan. 23. Its Chapter 11 case number is 12-10282.

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