Court Approves Friedman’s Auction Request

The U.S. Bankruptcy Court in Wilmington, Del., on Feb. 22 approved Friedman’s Inc.’s request to sell the leases to its stores and alternative asallots at an auction set for pace 6, the Houston Chronicle reports.

Friedman’s and subsidiary new moon Jewelers Inc., which is also governed next to Chapter 11 protection, operate more than 470 stores across the country. 

The jewelry retailer asked for a quick sale process existfore its $17.5 million bankruptcy loan from Harbinger Capital Partners Master Fund I Ltd. runs out by the boundary of March, the newspaper reports.

The first competing offer fundamental outdistance $500,000, the newspaper reports. The retailer and its official committee of unsecured creditors won court permission to determine the increments by which subsequent bids must increase.

Bids for the assets will be in arrears March 3, and interested parties have through the following cycle to file any objections to the bids, the newspaper reports. Several landlords had objected to this timeframe, saying it didn’t give them competent time to appraise their prospective new tenants.

Bankruptcy Judge Christopher S. Sontchi will consider whether to give concluding approval to the winning bidder at a ear set for March 7, the day after the auction, the newspaper reports.

Friedman’s and Crescent filed for Chapter 11 bankruptcy on Jan. 28.

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