Corsicana cancels auction, names lender affiliate winner for assets

By Sarah Lizee

Olympia, Wash., Aug. 12 – Corsicana Bedding, LLC, which does business as Corsicana Mattress, canceled an auction for its assets after receiving no qualified bids by the deadline, according to a notice filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The company named the stalking horse bidder, Corsicana Acquisition LLC, an affiliate of prepetition term lender Blue Torch Finance, LLC, the winning bidder.

The purchase price includes a credit bid of $125 million of the debt under the prepetition term loan and the debt under the debtor-in-possession note; cash totaling $200,000; the assumption of liabilities; and the assumption or refinancing of the debt under an asset-based lending facility.

The agreement includes a $1 million expense reimbursement.

Qualified bids were due by 6 p.m. ET on Aug. 10. An auction would have been held on Aug. 12 if any qualified bids were received by the deadline.

A sale hearing will take place on Aug. 16.

The Corsicana, Tex.-based mattress company filed Chapter 11 bankruptcy on June 25 under case number 22-90016.

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