Global Brands unit gets approval of bid procedures, DIP financing

By Sarah Lizee

Olympia, Wash., Sept. 1 – Global Brands Group Holding Ltd. subsidiary GBG USA Inc. received court approval of the bid procedures for the sale of substantially all of its assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

GBG USA also received court approval to enter into a stalking horse asset purchase agreement with WH AQ Holdings LLC as purchaser and Hilco Brands LLC as guarantor for the purchase of the debtors’ Aquatalia brand and business.

The stalking horse bid provides a purchase price of $17.3 million, and the APA is subject to higher or otherwise better offers, among other conditions. The stalking horse agreement has a 4% breakup fee and a $300,000 expense reimbursement.

GBG USA is also pursuing the sale of a substantial portion of its remaining assets, including Ely & Walker, Airband, MagnaReady, Yarrow, b New York and JUNIPERunltd.

Under the bid procedures, bids are due by 5 p.m. ET on Sept. 13, an auction, if needed, will be held on Sept. 15, and a sale hearing will be held on Sept. 21.

DIP financing

Also on Tuesday, GBG USA received final court approval of a $16 million debtor-in-possession facility from ReStore Capital, LLC to support its additional liquidity needs during the Chapter 11 cases.

The facility is set to mature in six months and bears interest at Libor plus 800 basis points. Default interest would be an additional 2%.

The DIP facility has a 4% closing fee and a 4˝% exit fee.

The DIP facility, coupled with the consensual use of cash collateral, which was also approved Tuesday, should provide the company with enough funding to implement its sale strategy in an orderly manner and to maximize value for all stakeholders, GBG USA said.

New York-based GBG USA is primarily engaged in operating the wholesale and direct-to-consumer footwear and apparel business in North America. The company filed bankruptcy on July 29 under Chapter 11 case number 21-11369.

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