Syms Corp. (SYMSQ:US), the bankrupt discount clothing chain, and its Filene’s Basement LLC are seeking court permission to sell a Miami property at auction with an opening offer of $4.5 million.
Syms will ask a judge to approve bidding procedures for the proposed auction at a hearing set for July 31, according to documents filed July 17 in U.S. Bankruptcy Court in Wilmington, Delaware. The company plans to hold the auction on Aug. 14, followed by a hearing to approve the sale on Aug. 16, according to court papers. All bids would be due by Aug. 13.
“The sale represents its best opportunity under the circumstances to maximize the value of the property,” lawyers for Syms said in court papers. The sale is “crucial” to Syms’s effort to confirm a restructuring plan by mid-September, according to the filing.
Syms selected Florida-based Independent Living Systems LLC as the so-called stalking horse, or lead bidder, with a $4.5 million bid after marketing the property since February, according to court papers. Independent’s offer would set the floor for other potential buyers to beat.
Syms, based in Secaucus, New Jersey, last week won court approval of its disclosure statement, an outline of the reorganization plan, allowing the company to send the proposal to creditors for a vote. The company seeks to reorganize around Syms’s real estate assets, valued at about $147 million. Syms is scheduled to seek court approval of the plan on Aug. 29.
The lead case is In re Filene’s Basement LLC, 11-13511, U.S Bankruptcy Court, District of Delaware (Wilmington).
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