MINUTES OF PROCEEDING for September 11, 2001 Hearing re: Debtors' Motion for Orders (i) Authorizing Auction for the Sale of the Debtors' Cycling Assets and Approving Bidding Procedures in Connection Therewith; (ii) Authorizing and Approving (A) the Asset Purchase Agreement with Huffy Corporation and HSGC, Inc. or such Other Purchaser Providing a Higher or Otherwise Better Offer (B) the Sale of the Assets of the Debtors' Cycling Division, Free and Clear of All Liens, Claims, Interests and Encumbrances; and (C) the Assumption and Assignment and/or Rejection of Certain Executory Contracts and Unexpired Leases in Connection with Such Sale; (iii) Scheduling Hearings with Respect Thereto; and (iv) Granting Related Relief
SIDNEY B. BROOKS, Bankruptcy Judge
The joint bid of Pacific Cycling and Direct Focus, Inc. in the sum of $151,000,000.00 for the Cycling Division and the Fitness Division, under the terms stated on the record in open court, was determined by the Court to be the highest and best qualifying bid. A copy of the proposed Order authorizing the sale shall be served on counsel for the Unsecured Creditors' Committee, the secured lenders, the United States Trustee, and Huffy Corp.
The Court ordered the parties to proceed with the sale of the Cycling Division and the Fitness Division forthwith. The last date for closing the sale is set forth Friday, September 21, 2001. In the event that the sale cannot be closed on or before Friday, September 21, 2001, a motion and notice of such motion shall be served on Debtor, Unsecured Creditors' Committee, United States Trustee and secured lenders requesting the extension the closing date. The motion and notice of the motion shall be filed no later than noon, Eastern Time, Wednesday, September 19, 2001. Any motion to extend the closing date must state, by way of pleading and affidavit, the compelling circumstances and specific cause for the delay. Only if good cause is demonstrated will the Court consider or permit another later closing date and such extension shall only be permitted by Order of the Court. The Court further reserves the option of assessing or directing the sharing of costs for any delay.
The Court further ordered that Pacific Cycling, Direct Focus, Inc. and The Pool BVBA meet and discuss possible resolution of the issues related to assumption or rejection of the executory contract. The parties are to file with the Court a statement regarding any resolution of this matter on or before Friday, September 21, 2001. In the event that the matter is not resolved, the parties shall file a statement advising that it is not resolved and the Court will set the matter for hearing during the week of September 24, 2001.