Former AmeriMark has Chapter 11 bankruptcy case dismissed by court

By Sarah Lizee

Olympia, Wash., Sept. 25 – Oldco AI LLC, formerly AmeriMark Interactive, LLC, had its Chapter 11 bankruptcy case dismissed by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

As previously reported, the company said that in the first three months of the cases, the debtors, lenders and official committee of unsecured creditors worked diligently to maintain the value of the debtors’ estates during the court-approved sale process that culminated in the closing of the sales of the debtors’ AmeriMark and LTD Commodities LLC business divisions to Midwest Catalog Brands, LLC and ASC Brands, LLC, who also agreed to assume some of the debtors’ customer and vendor liabilities.

More specifically, Midwest Catalog purchased the AmeriMark assets for $52 million, and ASC, an affiliate of SLR Credit Solutions, the agent and a lender under each of the company’s prepetition credit facility and the debtor-in-possession facility, purchased the LTD assets with a $45 million credit bid.

In addition, the court has authorized the debtors to sell the purchased litigation assets to SLR affiliate SLR-AMI Acquisition SPV, LLC in exchange for an $85 million credit bid.

AmeriMark said that while the purchase price is sufficient to satisfy most of the debtors’ obligations under the DIP facility and reduce the debtors’ obligations under the prepetition credit facility, the debtors will still owe about $45 million under the prepetition credit facility after closing the sale of the purchased litigation assets, and there are amounts outstanding under the DIP facility.

The lenders collectively have first priority senior secured liens on any assets remaining in the debtors’ estates through the DIP financing order and prepetition credit facility.

However, as a result of the sales, the debtors have no material assets remaining with which to monetize value for the lenders or any other creditors.

As such, there is no reasonable prospect of distributions from the debtors’ estates, other than payments made in line with the budget approved by the DIP financing order, which includes payment on account of U.S. trustee fees, professional fee claims for retained professionals, and post-petition ordinary course administrative claims to the extent included in the DIP budget.

The company said dismissal is the most expeditious and cost-effective mechanism to wind down the debtors’ affairs.

AmeriMark is a Cleveland-based direct marketer of women's apparel, shoes, cosmetics, fragrances, jewelry, watches, accessories and health-related merchandise. The company filed bankruptcy on April 11 under Chapter 11 case number 23-10438.

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