Tweeter Submits Stalking Horse Bids from Investment Management Firms
Tweeter has submitted two stalking horse bids to the U.S. Bankruptcy Court that would sell off substantially all of its assets.
The major bid is from an entity called Tweeter Newco, LLC, which it appears is headed by one George Schultze of Schultze Asset Management, LLC, an investment management firm that specializes in “distressed and special situations investing.” The firm “manages over $500 million in assets for institutional and high net worth clients located throughout the world.” Or, as its web site puts it, “We seek to exploit inefficiencies and mispricings due to issuer distress across a range of corporate securities, in any part of the capital structure, at any point in the reorganization process.” Tweeter Newco has offered to purchase “substantially all” of Tweeter’s assets for $38 million.
Meanwhile, two other investment management firms have apparently teamed up to offer $10 million for Tweteer’s stake in manufacturer Tivoli Audio. Those firms are Whippoorwill Associates, which specializes in “distressed investing on behalf of institutional clients,” and Bay Harbour Management, an “event-driven value investor focused on managing diversified portfolios of absolute return investments in the high yield, bankruptcy reorganization (distressed debt), special situation, and post bankruptcy arenas.”
These are stalking horse bids; other parties can up the ante if they so choose, but it appears they must do so before July 13, when a sale approval hearing is scheduled.