Krystal cancels auction, names lender agent entity as winning bidder

By Caroline Salls

Pittsburgh, May 6 – The Krystal Co. cancelled the auction for its assets and will ask the court to approve a $27 million sale to DB KRST Investors LLC, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Georgia.

The buyer, a sub-agent of credit agreement administrative agent Wells Fargo Bank, NA, submitted a credit bid of the company’s pre-bankruptcy first-lien obligations. DB KRST will also assume liabilities related to the assets being purchased.

Krystal said it did not receive any other bids by the May 5 bid deadline.

The sale hearing is scheduled for May 13.

Krystal is a Dunwoody, Ga.-based chain restaurant operator. The company filed bankruptcy on Jan. 19 under Chapter 11 case number 20-61065.

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