Avado Brands asks for court approval of bidding procedures for asset sale

By Reshmi Basu

New York, Sept. 24 - Avado Brands, Inc. asked for court approval of the company's bidding procedures for the sale of some or substantially all of its assets as well as the assumption of executory contracts and unexpired leases, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the proposed bidding procedures, bids must be accompanied by a cash deposit of an amount equal to or greater than 10% of the offer price or $100,000. Upon consultation, the company will then designate qualified bidders. Also subject to court approval, the company may select a stalking horse bidder.

The deadline for submitting bids is Nov. 7.

An auction is scheduled for Nov. 14, and the sale hearing will be held Nov. 20.

In the motion, the company said it needs the asset sale to move quickly because it is losing around $2 million per month.

A hearing on approval of the bidding procedures is scheduled for Oct. 16.

Avado Brands, a Madison, Ga., restaurant company, filed for bankruptcy on Sept. 5. Its Chapter 11 case number is 07-11276.

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