Thornton, Colo. - Ultimate Electonics' CEO Mark Wattles has formally submitted a bid to buy most of the assets of the bankrupt A/V specialty chain, which goes on the auction block on April 15.
The Ultimate Bidding War
Thornton, Colo.— Ultimate Electronics was scheduled to put all of its assets on the auction block last Thursday, a move that comes after the A/V specialty chain failed to meet a final deadline to forge a financing package that would pay creditors and fund its emergence from Chapter 11 bankruptcy protection
According to regulatory filings with the U.S. Securities and Exchange Commission,Wattles' investment vehicle, Ultimate Acquisition Partners, has offered $47.1 million in cash and a promisary note for the majority of Ultimate's inventory and leases.
The move is being backed by the chain's unsecured creditors, barring a higher or better offer, the filing indicated.
If successful, the action would allow Ultimate to re-emerge as a new retail entity, free of bankruptcy and debt. According to the filing, Wattles would also consider making employment offers to substantially all employees working at locations where the company purchases inventory.