Joe's Sports & Outdoor seeks court OK of $51.21 million DIP loan, asset sale procedures

By Caroline Salls

Pittsburgh, March 5 - Joe's Sports & Outdoor requested court approval of a $51.21 million debtor-in-possession facility from Wells Fargo Retail Finance, LLC and the bid procedures for the proposed sale of its assets, according to Wednesday filings with the U.S. Bankruptcy Court for the District of Delaware.

The DIP facility includes a $50 million revolving credit facility and a $1.21 million capital expenditure term loan.

Interest on the revolver will be Base rate plus 225 basis points, and interest on the term loan will be Base rate plus 275 bps.

The facility will mature on April 17.

The company said it plans to select a stalking horse bid for substantially all of its assets by March 24, set a March 27 deadline for competing bids, hold the auction by March 30 and sale hearing by April 2 and close the sale by April 3.

The company said it will solicit bids for a sale of as many stores as possible as a going concern and bids for going-out-of-business sales.

All bids must include a 10% deposit toward the proposed purchase price.

If the stalking horse bidder selected by Joe's is not the high bidder at auction, the company will pay it a $100,000 break-up fee.

According to the bankruptcy petition, Joe's Sports has $100 million to $500 million in both assets and debts.

The company's largest unsecured creditor is Baja Inc., Charlotte, N.C., with a $1.16 million claim. The company did not list any other unsecured creditors with claims of $1 million or more.

Joe's Sports, a Portland, Ore.-based sports and outdoor retailer, filed for bankruptcy on March 4 under the name G.I. Joe's Holding Corp. Its Chapter 11 case number is 09-10713.

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