HMX Acquisition secures approval to sell assets to Authentic Brands

By Caroline Salls

Pittsburgh, Dec. 20 - HMX Acquisition Corp. received court approval to sell substantially all of its assets to Authentic Brands Group, LLC entity ABG HMX, LLC and W Diamond Group Corp., as licensee, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said no auction was held because the stalking horse bidder submitted the only qualified offer for the assets.

As previously reported, the stalking horse bid provides a purchase price that will pay HMX's secured lender in full in cash, provide enough additional cash to pay all expected administrative claims and pay a projected dividend to unsecured creditors.

Specifically, the company said the total purchase price will equal the sum of the total amount of the Salus pre-bankruptcy and post-bankruptcy lender claims, plus $5.1 million for HMX's bankruptcy estates.

If the buyer and licensee fail to execute a license agreement no later than three business days before the auction, the purchase price will equal the sum of the Salus claim plus $9.1 million for the bankruptcy estates.

HMX, a New York-based tailored clothing company, filed for bankruptcy on Oct. 19 under Chapter 11 case number 12-14300.

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