Renovate America gets court approval to sell Benji assets to lender

By Sarah Lizee

Olympia, Wash., March 11 – Renovate America, Inc. received court approval to sell its Benji assets to stalking horse bidder and debtor-in-possession lender Finance of America Mortgage LLC, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

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, which is equal to roughly $43 million.

As previously reported, the official committee of unsecured creditors had objected to the transfer of valuable litigation claims to the lender for little or no consideration and to the extent it foists certain cure obligations upon the debtors.

Wednesday’s order said that the committee withdrew its objection as a result of amendments made to the asset purchase agreement on Tuesday relating to the transfer of claims.

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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