Berkline/BenchCraft gets OK for Tennessee estate sale, delays closing

By Jim Witters

Wilmington, Del., Nov. 23 - Berkline/BenchCraft Holdings, LLC received court approval of the proposed $2.4 million sale of a former distribution center and former manufacturing plant located in Morristown, Tenn., to Amtopp Corp., during a hearing Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

However, the buyer sought and received an extension of the closing date on the manufacturing plant after finding underground storage tanks at the site, according to court documents.

Amtopp's attorney told the court his client will assess the nature of the tanks and their potential environmental impact before deciding whether to go through with the purchase.

Amtopp said it plans to close the deal on the distribution center as quickly as possible.

If the buyer elects to close only on the distribution center, the price will be $1.6 million, debtor's attorney Morgan Seward said in the hearing.

The buyer plans to close on both deals by Nov. 30, Seward said. If the results of the storage tank inspections lead to a change in the sale agreement, the parties will return to court.

Berkline/BenchCraft, a Morristown, Tenn.-based designer, innovator and manufacturer of residential upholstered furniture, filed for bankruptcy on May 2, 2011. Its Chapter 11 case number is 11-11369.

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