Below via bicycleretailer.com
If all goes to plan, a Colorado investor group will acquire Niner, Inc.’s assets and bring the company out of bankruptcy before the end of the month
But first, other potential buyers will be given a chance to bid for the company at an auction next Thursday.
The auction will be held only if additional qualified bidders appear by next Wednesday, the deadline for bid submissions. If no bidders turn up, the investor group’s “stalking horse” purchase agreement will be accepted and the deal will be closed on Jan. 17.
Niner petitioned for Chapter 11 protection on Nov. 27 in Denver’s bankruptcy court, listing assets of $9.8 million and liabilities of $7.9 million. A few days prior to the filing, Niner had announced that it would be acquired by an investor group later identified as Columbia Basin Partners.
At the time, company co-founder, CEO and president Chris Sugai told BRAIN that the bankruptcy filing was done in anticipation of the sale.
“This was the cleanest and fastest way to do it,” Sugai told BRAIN on Nov. 28. He said Niner had been looking for an investor or buyer who could help it grow and compete with better funded rivals in the bike market. Court filings indicated Niner was over leveraged and lacked resources to invest in product development and marketing.
“We will be a stronger company when we come out of this,” Sugai told BRAIN. “(The partners) are not buying the company to strangle it; they like the company and they want to grow it.”
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