VEND will probably only get $2.5 million from its bankruptcy sale.
This information has not been confirmed by VEND itself, but according to the Creditors' Committee:
- Chessler's initial bid is $2.5 million
- The process, including the terms of compensation for the proposed investment banker, is set up in such a way as to make it highly likely that Chessler will be the only bidder.
After VEND repays the DIP loan to Chessler, pays the expenses of the sale and the administration of its bankruptcy estate and pays ongoing post-petition expenses like payroll, rent, utilities, etc., there will be little or nothing to spread around among its creditors.
There's a chance that someone will come along to top Chessler's bid, but that's low, and even if someone tops it by 20%, bringing the bidding up to $3 million, you'll get the same result, since most of the difference will go to Chessler as a break-up fee.
