Gnc Stalking Horse Agreement

The company warns rights holders that the rejection of the plan could affect its future operation. « Termination of the restructuring aid agreement could lead to lengthy Chapter 11 cases, which could have a significant and detrimental impact on debtors` relationships with suppliers, suppliers, employees and large customers, » the filing states. According to court documents, Harbin`s $770 million offer consisted of $550 million in cash (financed by a $400 million long-term credit facility from the Bank of China and $15.0 million in subordinated financing), issuing loans with a second mortgage to the company`s long-term lenders to the tune of $210 million (subject to certain adjustments) and the issuance of D ollar 10 million of convertible bonds subordinated to the company`s generally unsecured creditors. « We continue to work towards the completion of the offering for the Harbin-Stalking horse, as it has the opportunity to create additional value for CNG stakeholders. We will continue to work in good faith with Harbin and our constituents on a transaction, » Caroline Reckler, a lawyer representing GNC, told the court at a hearing Wednesday. Insolvency Judge Karen Owens ruled Wednesday that the harassment agreement between the two companies was satisfactory. Harbin agreed to offer $US 760 million, plus the redemption of certain liabilities, to set a minimum purchase price for CNG`s assets. In order to remove these objections, GNC agreed to extend the deadline for submission by at least one week. If an agreement on a bullying horse is reached before August 3, the auction period expires on September 4. If this is not the case, the auction period expires on September 11. The auction is scheduled for September 8, when GNC has a horse stalking agreement, or September 15 if it doesn`t.

GNC is one of the luckiest. He entered Chapter 11 with a sales contract and will likely leave bankruptcy if it is smaller. In June, GNC went bankrupt under Chapter 11, with Harbin acting as bidder for the bullying horses (the initial deal is worth more than $750 million on CNG). Harbin`s interest was not unexpected after the Chinese pharmaceutical company invested $300 million in GNC. « The Stalking Horse-bidder conferred a substantial advantage on the debtors [GNC Holdings Inc. and its related companies] and their creditors by providing an underlying, increasing the likelihood of a competitive bid at the auction, and facilitating the participation of other bidders in the sale process, thereby increasing the likelihood that the value of the assets would be optimized by the debtors` sale process. » Owens wrote in his order. However, the deposit does not determine whether the transaction would increase the total purchase price paid by Harbin under the Stalking Horse deal, although the total purchase price appears to increase to $780 million. The company said it was negotiating documentation relating to the creditor committee`s comparison, which would include amendments to the contract for the sale of stalking horse, the restructuring support agreement and the recovery plan proposed by the company. In an 8K filed with the Securities Exchange Commission (SEC), GNC said the offer of harassment horse was accepted by debtors on Aug. 7 and was approved by the bankruptcy court on Aug. 19. .

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