Berkline/BenchCraft sale of intellectual property OK'd; sale date set

By Jim Witters

Wilmington, Del., July 25 - Berkline/BenchCraft Holdings LLC can proceed with the sale of its intellectual property for $850,000, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Ashley Furniture Industries Inc. is the stalking-horse bidder. Under the Monday ruling, if Ashley is not the high bidder at auction, Berkline/BenchCraft will pay Ashley a $25,500 breakup fee and reimburse up to $40,000 of its sale-related expenses.

Berkline/BenchCraft's intellectual property includes patents, trademarks, logos, domain names and URL addresses, toll-free telephone numbers, customer and vendor data and style and pattern books.

The bid deadline is 4 p.m. ET on Aug. 8, and bids must be for at least $80,000 more than the stalking-horse bid. Bids at auction must be in minimum increments of $10,000.

If more than one qualified bid is submitted, an auction will be conducted at 10 a.m. ET on Aug. 11 at the offices of Young Conaway Stargatt & Taylor LLP, 1000 West St., 17th Floor, Wilmington, DE.

The objection deadline is 4 p.m. ET on Aug. 8. The sale hearing is scheduled for 9:30 a.m. ET on Aug. 12.

Berkline/BenchCraft, a Morristown, Tenn.-based designer and manufacturer of residential upholstered furniture, filed for bankruptcy on May 2. The Chapter 11 case number is 11-11369.

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