Troika Media’s proposed sale to lenders draws objection from committee

By Sarah Lizee

Olympia, Wash., Jan. 25 – Troika Media Group, Inc.’s proposed asset sale to a Blue Torch Finance LLC entity drew an objection Thursday from the official committee of unsecured creditors, according to documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

As a reminder, the company plans to implement a restructuring support agreement with funds managed by Blue Torch, the company's senior secured lenders, through which Blue Torch agreed to acquire substantially all of the assets of the company via a stalking horse credit bid of $51 million total. The bid was subject to competing bids via the company’s bid procedures.

No other qualified bids were received by the deadline.

“By the sale motion, the debtors seek to hand their businesses over to their secured lenders pursuant to a credit bid that leaves inadequate funds to wind down the debtors’ estates, let alone provide any distribution to other creditors,” the committee said in the objection.

The group also said that the sale agreement would release valuable claims that the estates may have and give the lenders protections that would be unavailable to them outside of bankruptcy.

The committee said that any sale must be conditioned upon the lenders leaving behind enough cash to confirm a plan and otherwise wind down the estates.

A sale hearing is set for Jan. 30.

Troika is a brand consultancy and marketing company based in New York. The company filed bankruptcy on Dec. 7 under Chapter 11 case number 23-11969.

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