Judge Thomas J. Catliota of the U.S. Bankruptcy Court for the District of Maryland authorized Creative Hairdressers, Inc.’s bidding procedures in connection with the sale of substantially all assets to HC Salon Holdings, Inc. and the direct and its indirect Subsidiaries, subject to overbid.
The consideration for the Acquired Assets will be (i) the Assumed Liabilities, (ii) the credit bid in an amount equal to 90% of the Obligations (as an offset against, and reduction in the amount of the Sellers’ debt in respect of such Obligations under the DIP Financing Agreement), and (iii) the amount, paid in cash, equal to the amount set forth in the Wind Down Budget.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: May 21 2020 at 12:00 p.m. (ET)
b. Initial Bid:
c. Deposit: 10% of the aggregate cash Purchase Price
d. Auction: The Auction, if an auction is necessary, will be held at 10:00 a.m. (ET) on May 22, 2020. In light of the outbreak of Coronavirus Disease 2019, no person or entity will be required to attend the Auction in person. The Auction may be conducted by telephone conference or remotely via any appropriate video or other conferencing medium the Debtors may choose in their sole discretion, such as Zoom, Skype for Business or any other conferencing system. In advance of the Auction, the Debtors will provide appropriate notice of the medium they choose to use to conduct the Auction and provide information so that parties allowed to participate in the Auction may do so.
e. Bid Increments: $100,000
f. Sale Hearing: May 28, 2020 at 12:00 p.m. (ET)
g. Sale Objection Deadline: May 27, 2020, at 5:00 p.m. (ET)
h. Closing: May 29, 2020
i. The Stalking Horse Purchaser will have the right to credit bid.
To the extent the Stalking Horse Purchaser seeks payment of the Expense Reimbursement (not to exceed $200,000), it will file a notice thereof with a summary report of any times entries of its counsel and applicable expenses and provide parties in interest with 14 day to object, in the absence of such objection the Expense Reimbursement will be deemed approved and will be paid in cash when and as set forth in the Stalking Horse APA, without the need for any further order of the Court.
The notice to all counterparties to all contracts expected to be Designated Contracts is approved. On May 4, 2020, the Debtors will serve the Order and the Contract Assumption Notice to the Notice Parties. The Cure Objection Deadline is (i) May 18, 2020 at 5:00 p.m. (ET), or (ii) 5:00 p.m. (ET) on the date that is five calendar days after the date of service of any Supplemental Contract Assumption Notice in respect of such Designated Contract. The Contract Assumption Objection Deadline is (i) May 18, 2020 at 5:00 p.m. (ET), or (ii) 5:00 p.m. (ET) on the date that is five calendar days after the date of service of any Supplemental Contract Assumption Notice in respect of such Designated Contract.
Notwithstanding the possible applicability of Bankruptcy Rules 6004, 6006, 7062, 9014 or otherwise, the terms and conditions of the Order will be immediately effective and enforceable.
A copy of the Bidding Procedures is available at https://tinyurl.com/yaxpk9xw from PacerMonitor.com free of charge.
About Creative Hairdressers
Creative Hairdressers, Inc., operates over 750 salons nationwide under the trade names Hair Cuttery, BUBBLES, and Salon Cielo. The company began in 1974 to create a quality whole-family salon where stylists could make a good living.
Creative Hairdressers and Ratner Companies, L.C., sought Chapter 11 protection (Bankr. D. Md. Lead Case No. 20-14583) on April 23, 2020. Creative Hairdressers was estimated to have $1 million to $10 million in assets and $10 million to $50 million in liabilities.
Debtors tapped Shapiro Sher Guinot & Sandler as legal counsel; Carl Marks Advisors as strategic financial advisor; A&G Realty Partners as real estate advisor; and Epiq Bankruptcy Solutions as claims agent.