Crumbs Bake Shop, Inc. filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on July 14, 2014. The debtor seeks the Court's approval for the sale of its substantially all its assets to Lemonis Fischer Acquisition Company, LLC., the stalking horse bidder, for an estimated purchase price of $6.51 million as credit bid pursuant to the asset purchase agreement dated July 11, 2014. The purchase price shall be an amount equal to and payable in the form of a credit bid of the full amount of the obligations then outstanding under the DIP Credit Agreement and the Pre-Petition Senior Secured Loan.

The debtor's assets include all assumed contracts raw materials, work in process and inventory, fixed assets, leasehold improvements, equipment, tangible personal property and interests, prepaid expenses, prepaid rents, prepaid insurance utility deposits and deposits on contractual obligations and assignable permits. To qualify as a qualified bidder, interested parties should submit their bids by August 19, 2014. The initial minimum overbid should be at least $0.45 million more than the initial purchase price.

The debtor has scheduled an auction on August 21, 2014. At the auction, the subsequent bids would be in increments of $0.1 million. The stalking horse bidder would be entitled to a break-up fee of 3% of the purchase price and expense reimbursement of $0.15 million in case of termination of the asset purchase agreement.

The sale hearing is scheduled for August 27, 2014. McAfee & Taft A Professional Corporation have acted as advisor to the buyer. Each bidder will be required to make a good faith deposit of $0.3 million.

The scheduled closing date of transaction is August 29, 2014.