COURT UPDATE OUT: SCHS lowers barriers to entry for auction...
1. Among other changes, would be buyers would now only have to top Bayside's offer by $1.65 mln instead of $4.5 mln.
2. SCHS continues to propose March 19th bid deadline, March 25th auction, March 27th Court hearing to approve the winning bid. On February 19th, Court hearing will to approve the timeline as proposed. February 25th for consideration of the $50 Mln Bayside loan, although Court has authorized company to partially draw on it to enable operations.
I truly don't understand the barriers, Bayside most likely gets paid (x-amount) if they lose the bid. I have seen similar barriers on other types of bankruptcy proceedings. The highest bidder to the next thousand or even 10 thousand would be fitting, not in the millions. I would bet that Bayside can't lose here.
Good stuff - thanks. What I understand the bidders only get assets not the corporation. Therefore, the shareholders remain part of the final solution. The $50 million loan is secured by inventory and receivables, thus no further attachments. What's wild about this -- the company is still booking $30 million+ in monthly sales and is profitable -- and part of the reason to 'draw-down' on the loan.
No, the winning bid will get everything - it is a "going concern" sale. On the bright side for shareholders is that Canadian branch will be acquired too by the winning bidder BUT IT IS OUTSIDE OF THE BANKRUPTCY