DirectBuy Holdings secures approval to sell substantially all assets

By Caroline Salls

Pittsburgh, Feb. 14 – DirectBuy Holdings, Inc. received court approval to sell substantially all of its assets to CSC Generation, Inc., according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

CSC has agreed to pay $150,000 in cash, plus cure amounts related to assumed contracts, the amount of assumed liabilities, and a one-time up to $800,000 cash payment equal to the amount of a differential to be paid within 90 days of closing.

After CSC was deemed eligible to participate in the auction, stalking horse bidder Derby SPV, Inc., an entity formed at the direction of the holders of the company’s pre-bankruptcy notes, elected not to serve as the back-up bidder, the order said.

As a result, DirectBuy canceled the auction.

DirectBuy is a Merrillville, Ind.-based members-only showroom and home design center that offers merchandise at manufacturer-direct prices. The company filed bankruptcy on Nov. 1 under Chapter 11 case number 16-12435.

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