CPI trustee gets $3.3 million stalking horse bid; bid procedures OK'd

By Jim Witters

Wilmington, Del., May 31 - CPI Corp.'s Chapter 7 trustee won approval of bid procedures and stalking horse protections related to a proposed $3.3 million asset sale to Lifetouch Portrait Studios Inc., according to documents filed May 31 with the U.S. Bankruptcy Court for the District of Delaware.

Lifetouch, based in Eden Prairie, Minn., bills itself as the world's largest employee-owned photography company.

CPI trustee Charles A. Stanziale, Jr. said the bid is for photographic, studio and office equipment and other assets that currently are scattered across the country at former CPI studios.

Stanziale also received court approval to hire Logistics International LLC to retrieve, transport and safeguard the assets pending an orderly sale.

If a sale to Lifetouch or another buyer is approved, the proceeds would first go to Bank of America, NA, as administrative agent for certain lenders.

Any remaining funds will be used by the trustee to first pay the trustee's expenses, then make partial repayment of the prepetition debt, according to court documents.

Bidding procedures

Under the bidding procedures approved May 31:

• The minimum overbid is $3.5 million.

• The bid deadline is 11:30 a.m. ET on June 21.

• If an auction is necessary, it will be conducted at 11 a.m. ET on June 24.

• Bidding at the auction will be in increments of $50,000.

• If Lifetouch is not the successful bidder, it will be entitled to a breakup fee of $132,000.

• A sale hearing is scheduled for 9:30 a.m. ET on June 26.

• The sale must close no later than July 15.

CPI, a St. Louis-based portrait studio operator, filed for bankruptcy on May 1. Its Chapter 7 case number is 13-11158.

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