Utica- The U.S. Bankruptcy Court, Northern District of New York, with the
    Honorable Diane Davis presiding, approved the selection of a stalking horse bid,
    break-up fee, expense reimbursement and related relief and set a new bid
    deadline, auction date and sale hearing, in an order in the Nirvana,Inc.
    Bankruptcy case signed here on Friday and filed today.

    As we previously reported, In court documents obtained by linkinglewiscounty.
    com, we learned that Nirvana had requested the court to approve their selection
    of a stalking horse bid. A stalking horse offer, agreement, or bid, is an attempt by
    a debtor to test the market in advance of an auction. The intent is to maximize the
    value of its assets as part of (or before) a court auction in case of bankruptcy.

    The court documents indicated the stalking horse bid is from SNG Beverage
    Group, LLC. After a great deal of research, little information is available on this
    company. Based on the court documents, correspondence with the company is
    sent to an address in Clinton, NJ. Gulshan Chhabra is listed as the principal and
    managing member of the company. In a letter to the court dated October 06,
    2015, Mr. Chhabra stated that the SNG Beverage Group had submitted an Asset
    Purchase Agreement, which proposed to purchase virtually all of the debtors
    (Nirvana) assets for $7,350,000.00.

    Mr. Chhabra also asked the court to approve a break-up fee as well as an
    adjournment of the bid deadline, auction, and sale hearing. A breakup fee
    (sometimes called a termination fee) is a penalty set in takeover agreements, to
    be paid if the target backs out of a deal ,usually because it has decided instead
    to accept a more attractive offer.

    In the order filed today the court approved SNG as the stalking horse bidder at a
    bid of $7,350,000.00, as well as approving a $216,825.00 break-up fee in the
    event that SNG is over bid and the higher bid is accepted. This means the next
    bid amount (the over bid) must be at least $7,741,825.00 to cover approved
    expenses, the break-up fee and the required bid increment. Minimum bid
    requirements after any potential over bid would be in $50,000 increments.
    The order filed today also extends the bid deadline until 4 PM on Friday,
    November 6th and sets an auction date of Thursday, November 12th at 10 AM.
    The sale hearing is scheduled to take place on Tuesday,November 17th.

    Nirvana, which filed for Chapter 11 Bankruptcy in June, employs around 70
    people, many of whom reside in Lewis County. Workers were given notice in
    June that they could expect layoffs beginning in September, which was later
    extended through November.
Bankruptcy Court Approves 'Stalking Horse' Motion
in Nirvana Case; Auction Date Now Set
11/02/15 07:30pm
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