Another retailer comes off the bankruptcy auction block….
Following a hotly contested sale process, yesterday the bankruptcy court entered its order approving The Picture People’s sale to its prepetition lender through a designee, TPP OPCO, Inc.
The sale did not generate cash for creditors but instead was completed through a $12 million credit bid. (English translation: The lender was allowed to bid for the company by crediting its outstanding debt against the purchase price.)
The company has indicated that the sale will enable it to continue as a going concern, preserving roughly 1,200 jobs for its employees.
The credit bid, meanwhile, remains subject to attack by the Creditors’ Committee on a post-sale basis through December 9, 2016.