Pegasus Home: U.S. government lodges objection to sale motion

Chicago, Nov. 1 – Pegasus Home Fashions, Inc.’s asset sale has had an objection lodged against it by the United States on behalf of the Army Air Force Exchange and the Navy Exchange Service Command, according to an omnibus objection filed with the U.S. Bankruptcy Court for the District of Delaware.

The government is responding to the Oct. 3 notice that the debtors filed regarding the possible assumption and assignment and cure amounts with respect to executory contracts and unexpired leases.

The objectors assert that their agreements are not executory contracts and they cannot be assigned.

Further, the government does not consent to the transfer or assignment of any federal interest and any such assumption would stand outside of the sale motion.

Recently announced, Pegasus named stalking horse bidder Blue Torch Finance, LLC the winning bidder for its assets.

The price is a $64.1 million credit bid.

A sale hearing was scheduled previously for Nov. 2.

Elizabeth, N.J.-based Pegasus Home Fashions manufactures bedding and home products. The company filed bankruptcy on Aug. 24 under Chapter 11 case number 23-11235.

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