Bank Of The Carolinas Corp fka BCAR

[illegal_alias]

BCAR - Bank objects to proposed tobacco brand sale
http://www.journalnow.com/business/business_news/local/article_7611ec14-0c4f-11e3-a441-001a4bcf6878.html

Richard Craver/Winston-Salem Journal Winston-Salem Journal

Bank of the Carolinas Corp. filed an objection Thursday to the proposed $75,000 sale of cigar and pipe tobacco brands and trademarks for three defunct Mocksville tobacco manufacturers.

The 15-year run of making discount cigarettes by Renegade Holdings Inc., Renegade Tobacco Co. and Alternative Brands Inc. ended July 23 when the decision was made to liquidate them after a proposed $25 million deal collapsed involving Globe 360 Tobacco Inc., the U.S. subsidiary of a French tobacco manufacturer.

CB Holdings LLC of Raleigh has offered to buy those brands and trademarks, as well as the ingredient lists, blends and other intellectual property for the companies’ cigarette brands, but not the brands themselves. A hearing on the motion is set for 9:30 a.m. Tuesday at the U.S. Bankruptcy Court in Greensboro.

The bank is the debtors’ largest secured creditor with a claim of $1.05 million as of July 18.

The bank said it is objecting because it cannot confirm the $75,000 is “a reasonable price representing the true value of the assets to be sold,” and that the proceeds would not be paid directly to the bank. The bank also said it will request an order terminating the debtors’ right to continued use of cash collateral.