As Friday’s bid deadline approaches, motions fly in ASE bankruptcy case

By Steve Frothingham

Specialized and Trek file objections; court lets ASE “abandon” some inventory but suppliers work to recover the products.

DURHAM, N.C. (BRAIN) — Friday is the deadline for bidders to submit offers for the assets of Advanced Sports Enterprises, the parent of Performance Bicycle, distributor ASI, and an array of brands including Fuji, SE, Breezer, Kestrel and Roubaix. An auction will be held next week if competing qualified bids are submitted.

The sale proceeds will go toward paying back ASE’s debts. They include $88 million owed to secured creditors and at least $20 million owed to unsecured creditors, who include many bike industry suppliers. Claims are still being accepted.

On the other side of the ledger, the company owns a small amount of real estate and other property totaling about $15 million. The rest of its assets include store leases, proceeds from liquidation sales, and the trademarks and related intellectual property. What anyone will pay for those assets is the big unknown.

As the deadline approaches, ASE and its creditors are working to remove any issues hanging over the trademarks that could diminish their value, while other entities — including Specialized, Trek and Ideal Bike — are showing up asserting their …read more

Via:: Bicycle Retailer and Industry News