The Company

Creative Loafing

Alternative urban newspaper operating in bankruptcy.

The Challenge

A private equity lender wanted to foreclose or credit bid to gain possession of its collateral.   The long time ownership group had fostered a grassroots campaign to support the ownership as the best buyer for the assets based on a “public interest” argument, and by demonizing the lender.  The lender, meanwhile, could not trust any process run by the debtor.   The dispute raged on and the Court suggested that Equity Partners be retained as an independent “bid examiner” to ensure the process was fair, to evaluate the various components of competing bids, to help conduct the final auction, and to make a recommendation to the Court.

The Process

Equity Partners oversaw the distribution of diligence, listened to ownership’s arguments about value they added through favorable leases and other consideration, leveled the playing field for bidding purposes, and conducted the auction.

The Solution

Based on our oversight of the process, the lender was able to successfully credit bid in a manner that made clear they were the highest and best offer.  Equity Partners recommended the Court approve the sale to the secured creditor, which it did.