Musicland requests court OK of bid procedures for sale of 340 Sam Goody, Suncoast Video leases

By Caroline Salls

Pittsburgh, Feb. 13 - Musicland Holding Corp. requested court approval of the bidding procedures for the sale of its interests in 340 of its Sam Goody and Suncoast Video leases, according to a Saturday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company asked the court to schedule the auction for March 14 and the sale hearing March 17.

If a stalking horse bidder for an individual lease is not the high bidder, that bidder will be paid a $10,000 break-up fee. If a stalking horse bidder for a multiple-lease package is not the high bidder, it will be paid a break-up fee of 3% of the purchase price.

Musicland, a Minnetonka, Minn., specialty retailer of pre-recorded entertainment software products, filed for bankruptcy on Jan. 12. Its Chapter 11 case number is 06-10064.

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