Court Approves Friedman’s Auction Request

The U.S. Bankruptcy quad in Wilmington, Del., on Feb. 22 approved Friedman’s Inc.’s request to trade be in the busines the leases to its stores and other assets at an auction set for tread 6, the Houston Chronicle reports.

Friedman’s and subsidiary Crescent Jewelers Inc., which is in addition under Chapter 11 protection, operate more than 470 stores across the country. 

The jewelry retailer asked for a quick sale process before its $17.5 million bankruptcy mortgage from Harbinger Capital Partners captain capital I Ltd. runs elsewhere by the terminus of March, the newspaper reports.

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

Bids for the assets volition declaration be due March 3, and interested parties gain through the succeeding day to file any objections to the bids, the newspaper reports. Several landlords had objected to this timeframe, saying it didn’t allow them sufficient time to evaluate their anticipated new tenants.

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

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

This entry was posted on Monday, March 3rd, 2008 at 4:01 am and is filed under Watch Reviews | . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.