Tweeter shareholders withdraw asset sale objection

By Caroline Salls

Pittsburgh, July 12 - Tweeter Entertainment Group, Inc.'s shareholders withdrew their objection to the company's proposed asset and going-out-of business sales, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection filed on July 3 by shareholders Xerion Partners, Seven Bridges Management, LP and SeaRock Capital Management, LLP, Tweeter's substantial enterprise value is "being cast aside in favor of a fire sale liquidation at fire sale prices over a holiday week to pay off an oversecured lender."

The shareholders said the proposed sales will result in the company failing to maximize the value of its assets.

In addition, the shareholders said the quick 30-day sale process has provided constituencies with little or no opportunity to evaluate possible restructuring alternatives.

The hearing on approval of the sale is scheduled for Friday.

Tweeter, a Canton, Mass., consumer electronics retailer, filed for bankruptcy on June 11. Its Chapter 11 case number is 07-10787.

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