Daily News: September 21, 2012

Judge OKs Deal for RoomStore to Offer Mattress Discounter Stake

U.S. Bankruptcy Judge Douglas Tice in the U.S. Bankruptcy Court in the Eastern District of Virginia is allowing the U.S. Trustee presiding over RoomStore’s liquidation to sell its 65% stake in Mattress Discounters, a Furniture Today article said.

The deal, which involves trustee Lynn Tavenner, Mattress Discounters CEO Ray Bojanowski and Salus Capital Partners, the company’s lender, will allow Tavenner to solicit bids for the stake. If the bids don’t reach a minimum of $10 million, Bojanowski is allowed to buy back that stake of his company.

Because of this new deal the Mattress Discounters CEO will end his litigation over a 2010 agreement that said he would have the sole right to purchase the stake from RoomStore.

The auction is slated for October 29, and a hearing to approve the sale will be held on October 31.

To read the Furniture Today article in its entirety, click here.

Previously on abfjournal.com:

Court Grants RoomStore Request to Convert to Chapter 7 Liquidation, Friday, July 27, 2012

RoomStore Seeks Court Approval to Sell Mattress Discounters Stake, Friday, June 01, 2012