Apex Parks Group asset sale and global settlement approved by court

By Caroline Salls

Pittsburgh, June 4 – Apex Parks Group, LLC obtained court approval to sell substantially all of its assets to APX Operating Co., LLC, as well as approval of a settlement that increases the credit bid amount under the sale agreement, according to orders filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Although the auction was held, Apex said it received no other qualified bids, other than the one submitted by the stalking horse bidder.

As previously reported, APX Operating is an entity formed by Apex Parks’ pre-bankruptcy secured lenders. APX originally submitted a $45 million credit bid. However, Apex Parks Group’s official committee of unsecured creditors reached a global settlement reached with the purchaser, debtor-in-possession financing agent and lenders and senior secured agent and lenders that increases the credit bid amount to $60 million.

In order to avoid the cost of litigation to Apex Parks’ estates, the committee said the parties have reached the terms of a global settlement under which it has agreed to support entry of the final DIP financing order and sale order with modifications.

Under the settlement, a total of $550,000 will be reserved for payment of the committee’s professionals, with the amount not used for that purpose to go to Apex Parks.

The total revolving credit commitment in the DIP facility will be increased from the existing $14.5 million limit to the extent necessary to provide for the committee professionals carve-out.

In addition, specified claims and causes of action have been excluded from purchased assets and will instead remain assets of Apex Parks’ estates.

The committee said APX has agreed not to assert avoidance actions related to purchased assets.

APX will also assume liabilities associated with the assets being sold.

Irvine, Calif.-based Apex Parks Group is a privately held company with 10 family entertainment centers and two water parks. The company filed bankruptcy on April 8 under Chapter 11 case number 20-10910.

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