Corsicana gets court approval to sell assets to lender affiliate

By Sarah Lizee

Olympia, Wash., Aug. 23 – Corsicana Bedding, LLC, which does business as Corsicana Mattress, received court approval to sell its assets to the stalking horse bidder Corsicana Acquisition LLC, an affiliate of prepetition term lender Blue Torch Finance, LLC, according to a minute entry filed with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Corsicana named the lender affiliate the winning bidder after receiving no other qualified bids by the deadline.

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

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