Northwest secures approval of bid procedures for $27.96 million sale

By Caroline Salls

Pittsburgh, July 27 – The Northwest Co. LLC obtained court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Cathay Home, Inc. is the stalking horse bidder. Cathay has agreed to pay $27.96 million for the assets, including a $20.5 million purchase price payable in cash at closing and payment of $7.46 million in assigned contract cure amounts.

If Cathay is not ultimately the winning bidder, Northwest will reimburse up to $150,000 of its sale-related expenses.

Competing bids are due by 4 p.m. ET on Aug. 3.

An auction will be held on Aug. 5, if necessary.

The initial minimum overbid amount is $150,000. Subsequent bids must be made in minimum increments of $100,000.

The sale hearing will be held on Aug. 7.

Northwest is a Roslyn, N.Y.-based branded home textiles company. The company filed bankruptcy on April 18 under Chapter 11 case number 20-10990.

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