Following the ill-fated release of the Kings 2.0 personal vaporizer that led to a bankruptcy filing in September, NJOY is seeking approval to authorize the sale of the company to a consortium tied to the Homewood Capital investment firm.
Touted as one of the largest e-cigarette companies in the country, NJOY took part in a Chapter 11 auction Nov. 2 in New York City, with the goal of settling debts and selling company assets to the highest bidder.
In papers submitted to the Delaware bankruptcy court, NJOY Inc. said that the winning bid at the auction came from Homewood NJOY Acquisition LLC, a consortium of Douglas Teitelbaum’s Homewood Capital LLC and CGP Sottera Holdings LLC, according to Law360.
NJOY formerly conducted business as a company called Sottera, but any connection to CGP Sottera was not immediately evident in the filed court papers.
The business groups involved in the winning bid “pledged to pay $300,000 in cash, whatever outstanding obligations are left on the e-cigarette company’s debtor-in-possession financing facility, a credit bid representing $29.5 million in second-lien and junior term loan claims, and the assumption of the company’s first-lien term loan debt,” reads the Law360 report.
The NJOY sale is set to be considered during a hearing in the Delaware bankruptcy court.
To read a more detailed account of this story, click here for the Law360 report.