Cosi preparing for 363 sale process
Cosi announced that the company is aggressively seeking qualified bidders who may have an interest in purchasing substantially all of its assets in a sale process under Section 363 of the Bankruptcy Code. The Company also announced that the bidding procedures and sale schedule, which are pending approval of the Bankruptcy Court, will be available on or about October 20, and that all bids must be received by November 14. As previously disclosed, on September 28, 2016, the Company and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Massachusetts, Case No. 16-13704. Prior to the Chapter 11 filing, the Company entered into a non-binding term sheet with its lenders, AB Opportunity Fund LLC, AB Value Partners, L.P., and Milfam II L.P., pursuant to which these lenders or their designees agreed to lend the Company money in the bankruptcy as the Company's debtors-in-possession lenders. Also, the DIP lenders have proposed to purchase substantially all of the Company's assets and, subject to Bankruptcy Court approval, would serve as the "stalking horse bidder" in the 363 sale process. Qualified bidders must submit a higher or better bid than the offer from the stalking horse bidder.