Lenox asset sale approved

By Caroline Salls

Pittsburgh, March 4 - Lenox Group, Inc. obtained court approval of the sale of its assets to LDG-Delaware Opco, Inc., according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

LDG is controlled by Lenox term loan lenders, including Clarion Capital Partners, LLC.

As previously reported, Lenox named Upstairs Acquisition Corp. the high bidder following an auction held Feb. 11.

However, the court exercised its right to reopen the auction at last week's sale hearing and deemed LDG's offer a qualified bid.

Lenox declared LDG's bid the highest and best offer at the reopened auction, and Upstairs Acquisition declined to submit a further offer.

Under the sale agreement, LDG will buy substantially all of Lenox's assets for a consideration including $44.5 million of debt forgiveness, the assumption by LDG of specified liabilities, cash equal to the outstanding obligations under Lenox's debtor-in-possession credit facility and cash equal to the sum of $2.15 million to pay allowed administrative, priority and secured tax claims, accrued professional fees, $250,000 for distributions to general unsecured creditors and $100,000 to fund the costs and expenses of a plan administrator to wind down Lenox's estates after the sale closing date.

LDG has also agreed to offer jobs to Lenox employees who are still with the company immediately before the sale closing date.

Closing is subject to final court approval, clearance from the German Federal Cartel Office and other customary closing conditions, including third-party consent to the assumption and assignment of specified contracts.

Eden Prairie, Minn.-based Lenox is a maker of tableware, collectibles and giftware. It filed for Chapter 11 bankruptcy protection on Nov. 23, and its Chapter 11 case number is 08-14679.

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