Thane Direct $50 million asset sale approved, CCAA case recognized

By Caroline Salls

Pittsburgh, Dec. 1 – Thane Direct Co. receiver Richter Advisory Group Inc. received court approval of the sale of substantially all of the company’s assets to a new entity to be formed by Thane’s senior lenders, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Richter said the shares of New Thane Holdco will initially be owned indirectly by two of the three existing senior lenders, BMO and National Bank of Canada, and some of the Thane Group’s existing management team.

The buyers offered to purchase the Thane business for roughly $50 million, together with the assumption of most but not all of the existing contractual and trade creditor debt and the payment of some transaction costs.

According to the motion, the purchase price will be funded by financing to be provided by some of the senior lenders, and the cash proceeds of the transaction are to be immediately distributed by the receiver and applied to reduction of the existing debt owed to the senior lenders.

The U.S. court also entered an order recognizing Thane’s Companies’ Creditors Arrangement Act case and enforced the Canadian order approving the sale.

Thane is a Mississauga, Ont.-based direct response and retail marketer that filed bankruptcy on Oct. 25. The Chapter 15 case number is 15-12190.

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