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    Uni-Mart Sale Details Revealed

    Minimum purchase prices increased, no purchase price reductions permitted.

    BALTIMORE, Md. -- Matrix Capital Markets Group Inc., which is handling the sale of bankrupt convenience store operator Uni-Marts, provided more details of the stalking horse sale agreement from Kwik Pik LLC, an affiliate of Lehigh Gas Corp.

    Kwik Pik, which was approved as the stalking horse bidder last week, is obligated to close the transaction at the previously disclosed prices of $10 million for the Ohio assets and $6.7 million for the assets—a total of 131 sites—located in Pennsylvania and New York, as the agreement is "as is where is" without any environmental, financing or other contingencies, Matrix stated. Additionally, no purchase price reductions are permitted as Kwik Pik waived the rights to any further due diligence. Kwik Pik is also subject to forfeit a $500,000 escrow deposit if it does not close on the transaction.

    The agreement also allows an opportunity to increase the value above $16.7 million, while single store and small group bidding will be permitted on all the assets, the company stated. In addition, 76 assets are not covered by the "all or none" provision, allowing buyers interested in acquiring one or two stores to have that opportunity without facing constraints of an "all or none" bid, Matrix stated.

    Minimum bids for the assets were adjusted. The total for all minimum bids in Pennsylvania and New York was raised to $6.8 million, and includes the $6.7 million purchase price plus a $100,000 break-up fee if Kwik Pik is not selected as the auction winner. Meanwhile, the minimum bids for the fuels distribution assets, were revised down from $1.28 million to $876,000. The total of the minimum bids for the Ohio assets remains $8.6 million.

    "This sale process, like all sale processes run by Matrix, is developed to maximize the value for the assets included in this particular sale and is not a one size fits all process," Tom Kelso, managing director and principal of Matrix, said in a statement. "The Kwik Pik agreement allows us to create an auction process designed to ensure we have a competitive auction and to maximize the value for the company’s creditors."

    If Kwik Pik is declared the winner at the conclusion of the Sept. 23 auction process, the proposed transaction should close towards the end of October, according to Matrix.

    Related News:

    Kwik Pik Approved as Uni-Marts Stalking Horse

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