CraftWorks approved to sell assets to lender affiliate via credit bid

By Caroline Salls

Pittsburgh, May 26 – CraftWorks Parent, LLC received court approval of a semi-private sale of its assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, CraftWorks obtained approval to sell substantially all of its assets to an affiliate of senior lender Fortress Credit Co. LLC via a credit bid of pre-bankruptcy and post-bankruptcy secured claims.

The company said its goal is to transfer the assets to a buyer that can restart the business as quickly and safely as possible and enable landlords, vendors and former employees to resume their business relationship with the purchaser.

The Fortress affiliate has agreed to credit bid the full amount of outstanding debtor-in-possession financing obligations as of the closing date, plus pre-bankruptcy first-lien obligations equal to $93 million minus the sum of the outstanding DIP obligations and the amount of liabilities to be assumed by the buyer.

As previously reported, the company’s previous stalking horse purchase agreement was terminated on March 18 after CraftWorks ceased operations at all of its restaurants and laid off 18,000 employees as a result of the Covid-19 outbreak.

Chattanooga, Tenn.-based CraftWorks operates and franchises full-service restaurants. The company filed bankruptcy on March 3 under Chapter 11 case number 20-10475.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.