We’ll be following the developing Tweeter story here, both through our own reporting and through links to various sources around the web. Stay tuned for updates throughout the week...
If you’d like to share any tips—or just your thoughts—on the Tweeter story, please feel free to e-mail me at email@example.com.
6/27/07— Not to pat ourselves on the back (OK, maybe just a little pat), but as far as we can tell, we were the first media outlet in the world to report on Tweeter’s stalking horse bids yesterday. Hours later, Tweeter issued a press release that confirmed what we originally reported, but a few additional details were revealed.
• In addition to Schultze’s $38 million “going concern” bid for “substantially all” of Tweeter’s assets, Schultze would also assume $8 million of Tweeter’s “cure costs,” i.e., those associated with the bankruptcy proceeding, and would provide Tweeter with a $10 million junior debtor-in-possession (DIP) line of credit, which Tweeter said it would intend to use to purchase merchandise and for “other general corporate purposes.”
• Both Schultze and the Whippoorwill Associates/Bay Harbour Management pairing are bidding on Tweeter’s 18.75 percent interest in Tivoli Audio. Schultze’s bid is part of his overall package, while Whippoorwill/Bay Harbour are bidding $10 million for the Tivoli stake only.
• The U.S. Bankruptcy Court today approved both stalking horse bids, and now other interested parties who want to submit “higher or otherwise better” offers must do so before a July 10 auction proceeds.
• Tweeter President and CEO Joe McGuire stated: “We are pleased to complete these important steps in our restructuring process as we move forward. Our objective is to bring cash into the Company as quickly and responsibly as possible and today’s events move us closer to that goal.”
Other details, including links to the court documents, in the post below.