4Kids Adjourns Section 363 Auction
International children;s entertainment and merchandise licensing company 4Kids Entertainment, Inc. has just announced that they have received a competing bid from 4K Acquisition Corp, which is an indirect subsidiary of Japanese corporation Konami Corp. The competing bid has Konami offering to purchase all of the assets of 4Kids in a transaction under Section 363 of the Bankruptcy Code.
Under judgement of 4Kids, Konami’s bid was a qualified bid under the terms of the bidding procedures approved by the United States Bankruptcy Court for the Southern District of New York in the Company’s Bankruptcy Case pending before the court.
The news is noteworthy because 4Kids already commenced an auction between the stalking horse bidder, Kidsco Media Ventures LLC, which is an affiliate of Saban Capital, and Konami Corporation. After several sessions of competitive bidding, the auction was adjourned in order to give bidders a chance to consider an alternative transaction between 4Kids, Konami, and Saban pursuant to which each bidder will acquire certain assets of the company. The proposed alternative transaction, if consummated, would result in a substantial improvement in the proceeds payable to 4Kids over the last bid made prior to such adjournment.
The possible alternative transaction is conditioned upon the negotiation of definitive documentation among the 4Kids, Konami and Saban and the approval of such alternative transaction by the Bankruptcy Court. There can be no assurance that such alternative transaction will be completed.
Both Konami and Saban have each agreed that their last bids made prior to the adjournment of the auction will remain binding until July 31, 2012. The last bids made by the respective bidders prior to the adjournment of the auction will result in 4Kids realizing additional proceeds from the sale of assets when compared to each of the stalking horse bid set forth in the Asset Purchase Agreement entered into between the Company and the Saban Bidder as of April 25, 2012 and the Qualified Bid submitted by Konami prior to the auction. If the proposed alternative transaction is not consummated by 4Kids, Konami and Saban, the auction will resume.
Latest posts by Neil Raymundo (see all)
- DreamWorks Schedules Dragons: Race to the Edge Netflix Series for Summer - April 7, 2015
- Season 2 of Little Battlers eXperience Coming to Nicktoons - April 7, 2015
- Millimages’ Louie Gets New SVOD Deals - April 7, 2015