TWEETER HOME: Discloses Two Stalking Horse Bids for Assets
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Troubled
Company Reporter, June 27, 2007 |
Tweeter Home Entertainment Group, Inc.,
disclosed yesterday two "stalking horse" bids for its assets
in connection with the company's Chapter 11 reorganization efforts.
Schultze Asset Management, LLC has made
a $38 million "going concern" bid for substantially all of the
Company's assets. Schultze would also assume $8 million of
Tweeter's "cure costs" associated with the company's
bankruptcy proceeding, as well as provide the national specialty
consumer electronics retailer with a $10 million junior
debtor-in-possession line of credit. Tweeter intends to use
the $10 million in new funding to purchase merchandise and for other
general corporate purposes.
Schultze's bid includes the purchase of
Tweeter's 18.75% interest in Tivoli Audio, LLC
Separately, Whippoorwill Associates, Inc. and Bay Harbour Management,
L.C. have teamed up to make a $10 million bid for just Tweeter's Tivoli
ownership interest.
The U.S. Bankruptcy Court for the District of Delaware yesterday
approved Schultze's, Whippoorwill's and Bay Harbour's respective
"stalking horse" bids under a process where other qualified
bidders will have the opportunity to submit "higher or otherwise
better" offers.
An auction will commence on July 10, 2007 among Schultze, Whippoorwill,
Bay Harbour and any other qualified bidder.
"We are pleased to complete these important steps in our
restructuring process as we move forward," said Tweeter President
and CEO Joe McGuire. "Our objective is to bring cash
into the Company as quickly and responsibly as possible and today's
events move us closer to that goal."
About
Schultze Asset Management
Founded in 1998, Schultze Asset Management, LLC -- http://www.samco.net/ --
is a leading alternative investments firm specializing in
distressed and special situations investing. The firm manages
approximately $725 million in assets on behalf of institutional and high
net worth clients located throughout the world. Schultze's offices are
in Purchase, NY.
About Whippoorwill
Associates and Bay Harbour
Whippoorwill Associates, Inc. and Bay
Harbour Management L.C. are investment managers specializing in
distressed securities and special situations.
About Tweeter Home
Based in Canton, Mass., Tweeter Home
Entertainment Group Inc. -- http://www.tweeter.com/ --
retails mid-to high-end audio and
video consumer electronics products. Tweeter and seven of its
affiliates filed for chapter 11 Protection on June 11, 2007 (Bankr. D.
Del. Case No: 07-10787 through 07-10796). Gregg M. Galardi,
Esq. and Mark L. Desgrosseilliers, Esq. at Skadden, Arps, Slate, Meagher
& Flom, L.L.P. represent the Debtors in their restructuring efforts. As
of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and total
debts of
$190,417,285. The Debtors' exclusive period to file a plan
expires on Oct. 9, 2007.
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