Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey in Newark approved the bidding procedures for the sale of substantially all of the company's assets at a Thursday, July 24, hearing, according to debtor counsel Michael D. Sirota of Cole Schotz Meisel Forman & Leonard.
Lemonis Fischer Acquisition, a joint venture of Marcus Lemonis and Fischer Enterprises, will serve as the stalking-horse bidder for the auction with a $6.64 million credit bid. The stalking-horse bidder also would assume certain liabilities through the sale.
The offer includes a credit bid of the $5.51 million outstanding on prepetition debt plus the all-new-money $1.13 million debtor-in-possession loan from the proposed buyer.
Kaplan on July 16 authorized interim use of $200,000 of the DIP. A final hearing is scheduled for July 31.
Marcus Lemonis is the host of CNBC's "The Profit" and CEO of CWI Inc. and Good Sam Enterprises. Fischer Enterprises is an investment firm founded by Mark Fischer, the CEO of Oklahoma City's Chaparral Energy, and lent Crumbs $5 million in January.
According to Sirota, the proposed bidding procedures were revised after the official committee of unsecured creditors objected.
The creditors' committee on Wednesday asserted the proposed timeline was far too short since the committee was just formed; the amount of the stalking-horse bid was unclear; and the breakup fee and expense reimbursement were "excessive and should not be approved," among other concerns.