Renovate America names DIP lender winning bidder for Benji assets

By Sarah Lizee

Olympia, Wash., Feb. 24 – Renovate America, Inc. canceled an auction scheduled for Feb. 26 and named stalking horse bidder and debtor-in-possession lender Finance of America Mortgage LLC as winning bidder for the company’s Benji assets, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said it didn’t receive any written offers on or before the bid deadline, which was 8 p.m. ET on Feb. 23.

A sale hearing is scheduled for March 2.

The purchase price under the stalking horse agreement is equal to $5 million, plus assumed liabilities, plus the aggregate purchase price for the loans to be purchased by Finance of America from Renovate, plus the contract prepayment amount.

The agreement provided for a break-up fee of $400,000 and an up to $250,000 expense reimbursement.

Renovate America is a San Diego-based provider of financing solutions for environmentally friendly home improvement projects. The company filed bankruptcy on Dec. 21 under Chapter 11 case number 20-13172.

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