E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 1/22/2007 in the Prospect News Distressed Debt Daily.

Enesco obtains court approval of bidding procedures, interim approval of financing

By Jennifer Lanning Drey

Portland, Ore., Jan. 22 - Enesco Group Inc. obtained court approval of the bidding procedures for the proposed sale of substantially all of the assets of Enesco and Gregg Gift Manufacturing, Inc., according to an attorney.

EGI Acquisition LLC, a subsidiary of Tinicum Capital Partners II, LP, is the stalking horse bidder.

Additionally, the company was granted interim approval to obtain $65 million in post-bankruptcy financing from Wells Fargo Foothill, Inc., according to the attorney.

The company said in a previous filing that the financing will be used to pay amounts owed under Enesco's pre-bankruptcy credit agreement and for general corporate purposes.

The approvals came Monday from the U.S. Bankruptcy Court for the Northern District of Illinois.

A final hearing on the financing agreement has been scheduled for Feb. 7.

Bidding procedures

Under the approved bidding procedures, Tinicum will purchase a 100% participation interest in the post-bankruptcy financing and the proposed purchase price for the assets will be used to pay off the post-bankruptcy financing.

The purchase price will also include forgiveness of any and all pre-bankruptcy liabilities owed to affiliates of the buyer, including a $100,000 deposit funded by an EGI affiliate for the benefit of Tinicum; and $600,000 for administration expenses incurred by Enesco in its bankruptcy case.

If EGI is not the high bidder for the assets, Enesco will pay it a break-up fee of 3% of the total purchase price and expenses reimbursement of 0.5% of the total purchase price.

The asset sale auction is scheduled for Feb. 7, and the sale hearing will be held Feb. 8.

Post-bankruptcy facility

The post-bankruptcy facility will be in the form of a $65 million revolving credit facility, including a $1.5 million letter-of-credit sublimit.

Maturity will be the earliest of an event of default; conversion of the bankruptcy case to Chapter 7; the effective date of any plan of reorganization or liquidation; 90 days after the interim financing order; the closing of a sale of substantially all of the collateral; Feb. 21 if the final DIP order has not been entered; or the date of a final hearing if the financing is not approved.

Interest will be Base rate plus 250 basis points or Libor plus 550 bps, at Enesco's option.

Enesco, an Itasca, Ill., producer of fine gifts, collectibles and home decor accessories, filed for bankruptcy on Jan. 12. Its Chapter 11 case number is 07-00565.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.