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VANCOUVER, Wash. – Bowflex, Inc. (NYSE:BFX), a well-known home fitness company, has begun Chapter 11 bankruptcy proceedings, taking out $25 million in debtor-in-possession loans to keep the business afloat. We have secured it. The funding from SLR Credit Solutions will support the company's commitment to its employees, vendors and customers as it moves through the restructuring process.
In conjunction with the bankruptcy filing, Bowflex is acting as a “chasing horse” for a planned asset sale with Johnson Health Tech Retail Inc. for $37.5 million in cash, subject to certain adjustments and court approval. An agreement was reached on this. The stalking horse bid sets a floor for other offers that may occur during the bankruptcy sale process.
BowFlex CEO Jim Barr cited the post-pandemic environment and economic challenges as the driving force behind the strategic review that led to the company's decision to file for Chapter 11. Barr expressed optimism about a potential partnership with Johnson Health Tech and interest from other companies. parties during the sales process.
The proposed transaction is structured under Section 363 of the U.S. Bankruptcy Code, which permits competitive bidding. Interested parties will have the opportunity to submit higher or other better offers than the initial stalking horse bid. BowFlex outlined bid protections for Johnson Health Tech, including cost reimbursement, split fees, and forfeiture of deposit under certain conditions.
Legal and financial advisors have been appointed to assist in managing the BowFlex sale and auction process, including Sidley Austin LLP, Holland & Hart LLP, FTI Consulting (NYSE:), Inc., and FTI Capital Advisors LLC. playing a role.
The company's future operations and sale process are subject to court approval and other legal requirements. Additional details regarding the Chapter 11 litigation and asset sales can be accessed through Epiq, the company's claims representative.
This news is based on BowFlex Inc.'s press release statements and does not contain any speculation or forward-looking statements.
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