Top 50 retailer Big Lots stated at a hearing on October 21 as part of its continuing Chapter 11 bankruptcy proceedings that stalking horse bidder Nexus Capital Management is attempting to obtain the $750 million required to fulfill its offer for the firm’s assets.
The discounter’s lawyer, Jonah Peppiatt, told Judge J. Kate Stickles that Nexus is negotiating with Big Lots’ lenders to obtain the funding required to buy the company out of bankruptcy. This information was initially published by Bloomberg.
Big Lots and its stakeholders anticipate that Nexus will secure the funding to “firm up its bid” prior to the bid deadline of October 25, Peppiatt informed the court. Stickles questioned Big Lots’ proposal to reimburse Nexus in the event that it selects a different buyer, which prompted the financing question.
With an estimated $1,000,000,001 to $10 billion in assets and $1,000,000,001 to $10 billion in liabilities to an estimated 5,001 to 10,000 creditors, Big Lots filed for Chapter 11 protection on September 9.
On the same day, it announced a sales deal with Nexus Capital Management affiliates, contingent on stronger and higher bids in an auction procedure overseen by the court. As the auction’s stalking horse bidder, Nexus consented to buy the company’s assets and continuing operations. $2.5 million in cash, the debt repayment amount, and the assumption of other liabilities make up the agreed-upon acquisition price.
