Before ruling, Barnes said he was surprised the initial bid was as low as $90 million since Hawthorne officials earlier said they had entertained offers for well more than $100 million. The judge questioned all parties to the case about prospects for obtaining higher bids, including "going concern" bids, through an extension. A going concern bid is one that intends to purchase a distressed business or property with the intent of sustaining it.
With the bidding process shrouded in nondisclosure agreements, Barnes said it was left to his determination whether that chance was worth approving another $1.9 million in spending.
That interim financing and other obligations would be repaid through the proceeds of a sale. Barnes, however, indicated a sale price as low as $90 million might mean unsecured creditors might not recover any of the money they're owed.
"If the stalking horse bidder is the winning bidder, that's a disastrous outcome," said Michael Brandess, attorney for the creditors' committee.
The judge extended the deadline for bids, until July 10, in hopes of a bidder that would want to keep racing going. Evidently, The $90 Million bid was the only one received.
Harness racing is thriving.
Sincerely, Silent One
