After a long string of intense negotiations with potential buyers for Vann’s inc. retail stores the company finally got approval to sell five of it’s electronic stores to McMagic Partners LP. The bankruptcy judge John L. Peterson authorized the closing of the $4.5 million dollar deal that was made to keep the stores open.
Dick Samson, a court-appointed trustee of the case expressed his enthusiasm of the case’s finish. “I’m ecstatic because this is a completion of a successful negotiation. (Vann’s) will remain a viable business, that was the intention all along.”
Both Samson and the McMagic Company will work throughout the weekend to finalize the sale. If everything goes as planned the sale should be completed by late Monday afternoon.
Despite the hefty $4.5 Million dollar price tag, the sale is only half the $8 million dollar debt Vann’s owe to creditors. A professional liquidation firm assessed the remaining inventory at Vann’s to being worth 3.5 million dollars. Comparing the two offers, a sale is the best way to retain jobs. Representatives of GE Commercial Distribution Finance Corp, a senior creditor was present at the hearing, and confirmed that the creditor would receive $3.3 million dollars in the sale. Representatives of another creditor, First Interstate confirmed that the company would receive 1.3 million in the sale. Both companies approved the sale to McMagic.
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