Failed sale forces Hilco back-up deal and emergency DIP extension
Groff’s sale process hit a liquidity-sensitive reset after the prior winning bidder failed to close by February 17. The debtors filed the Hilco Commercial Industrial back-up APA with a $40.883 million purchase price, a $3.925 million deposit, and staged closings running from February 27 through April 17, with the first closing conditioned on termination of the failed winning-bidder transaction Back-Up Bidder APA and Sale Order.
The pivot is contested. BOKF, NA d/b/a Bank of Texas, a floor-plan lender asserting first-priority liens on equipment inventory and proceeds, objected unless the Hilco deal and sale order require BOKF to be paid in full at the initial closing BOKF Objection to Hilco Asset Sale. At the same time, the debtors sought emergency approval to extend the M&T DIP maturity through February 27, arguing the extension was needed to keep operations funded long enough to close the replacement sale Motion to Extend DIP Financing.