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BALTIMORE -- After failing to obtain court approval for the first stalking horse bidder that would acquire the assets of bankrupt convenience store chain Uni-Marts, Matrix Capital Markets Group, the firm handling the bankruptcy sale, named Kwik Pik LLC the new stalking horse bidder to acquire the assets at auction.
A motion to approve Kwik Pik, an affiliate of Lehigh Gas Corp., as the stalking horse was filed in the bankruptcy court, and a hearing to approve the motion is set for Sept. 3, according to Matrix.
Under the agreement, Kwik Pik would pay $10 million for the Ohio assets and $6.7 million for the Pennsylvania and New York assets. Approximately 70 of the assets in Pennsylvania and New York will be offered to individual store buyers if offers meet value requirements without any "all or none" restrictions, Matrix stated.
"The Kwik Pik agreement provides the debtor with a high degree of flexibility that provides the opportunity to truly maximize the value of the assets in an auction process where single assets and smaller groups of assets are available for sale," Tom Kelso, managing director of Matrix, said in a statement.
Last month, Tri-Color Holdings LLC, the primary shareholder of Uni-Marts, was named the stalking horse that would have acquired all the assets of the bankrupt more than 200-unit chain if it obtained court approval.
As a result, the deadline for submitting bids was extended to Sept. 16, 2009, with a live auction Sept. 23, 2009.
"Through the elimination of unprofitable assets and the successful reduction of prime operating leasehold rents, Uni-Marts is a different business than it was when it filed for bankruptcy," Kelso, managing director of Matrix, said in a statement last month. "The sale of the company-operated sites are an excellent opportunity for existing operators or entrepreneurs looking to enter the industry, and the lessee-dealer and dealer operations offer a substantial amount of fuels volume and rental income at very attractive values."
Interested parties may bid on the entire company, groups of assets or on individual stores. Qualified bidders that have fulfilled the bid requirements, and also submitted offers by the deadline of Sept. 16, 2009, will be invited to attend the Sept. 23, 2009 auction.
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