Footwear manufacturer The Rockport Group entered into an asset purchase agreement with CB Marathon, an affiliate of Charlesbank, pursuant to which Charlesbank will acquire substantially all of Rockport’s assets.
To facilitate the sale, Rockport and its subsidiaries filed for Chapter 11 in the U.S. Bankruptcy Court for Delaware. Under Section 363, Charlesbank will serve as the “stalking horse bidder” in a court-supervised sale process, with the agreement subject to higher and better offers, among other conditions.
Rockport also obtained a $60 million DIP ABL facility and $20 million in new-money DIP financing from its existing noteholders. According to the related court filings, Citizens Bank is the administrative agent, collateral agent, bookrunner and lead arranger of the DIP ABL facility.
The DIP financing will allow Rockport to maintain its operations through the sale process. The company expects to pay for all goods and services delivered on or after May 14, 2018 in the normal course. Payment for goods and services delivered prior to the filing will be addressed through the Chapter 11 process. Under the terms of the agreement, Charlesbank will assume responsibility for payment of certain pre-petition obligations to product suppliers of the acquired assets.
