Liquidators make LNT stalking horse bid
By Staff -- Home Textiles Today, 10/9/2008 2:38:00 PM
Wilmington, Del. – As anticipated, a group of liquidators has lined up as the agent for the final sale of Linens ’n Things merchandise and real estate assets, while the bid deadline approaches and no last-minute bidder has yet emerged to save the retailer from going out of business.
The agent, as documents filed with U.S. bankruptcy court here show, is to be a joint venture formed by Gordon Brothers Retail Partners, Hilco Merchant Resources, SB Capital Group, Tiger Capital Group, Hudson Capital Partners, and Great American Group.
In cost value of the merchandise to be liquidated, the document states, is “not less than $500 million and no more than $520 million.”
As the initial guaranteed yield from these goods, the liquidators promise to pay $200 million to LNT parent Linens Holding Co. on the day following court approval of the plan. That cash will then make its way variously among the LNT creditors including its main lender, General Electric Capital, and the holders of LNT senior debt notes.
The going-out-of-business sales are to start next Thursday, Oct. 16.
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