Gold Standard Baking bid procedures OK’d, despite committee concerns

By Sarah Lizee

Olympia, Wash., July 8 – Gold Standard Baking, LLC’s bid procedures for the sale of its assets were approved Friday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the official committee of unsecured creditors objected to the bid procedures.

The company is eyeing a sale to stalking horse bidder 37 Baking Holdings, LLC, which recently acquired the company’s first-lien debt and is also the debtor-in-possession lender in “a very compressed timeframe,” the group said.

The committee said it is concerned the stalking horse might be an insider, and the group made information and document requests from both the debtor and 37 Baking. As of Wednesday afternoon only “limited and insufficient” information in response to the committee’s requests has been provided, the committee said.

The stalking horse purchase price includes a credit bid against $20 million of the company’s first-lien debt, assumption of some liabilities, and assumption of contracts.

The agreement includes a $250,000 breakup fee and a $350,000 expense reimbursement.

The initial overbid has been set at an amount equal to the break-up fee, the expense reimbursement, and $200,000.

Under the bid procedures, the bid deadline is 4 p.m. ET on July 25, the auction will take place on July 28, and the sale hearing will take place on Aug. 3.

The company is hoping to close the sale by Aug. 15.

The Chicago-based industrial baker filed Chapter 11 bankruptcy on June 22 under case number 22-10559.

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