As The Real Deal reported yesterday, Grubb & Ellis has cancelled a bankruptcy auction to sell its assets, which has left BGC Partners as the only buyer. In addition, Grubb & Ellis’ cancellation has paved the way for a court hearing to approve the sale, which will happen today, according to CoStar Group’s blog.
According to CoStar, BGC’s initial offer stood as a credit bid of Grubb & Ellis’ $30 million of secured debt. But during the sale process, the blog indicates, BGC increased its offer to include a cash component that provides up to $16 million for the debtors’ estates.
“The fact that BGC was the lone bidder validates the conclusion that the purchase price was fair and adequately reflects the market value of substantially all of the debtors’ assets,” said Michael Rispoli, Grubb & Ellis CFO, in a court declaration filed yesterday. “Simply put, if the market value were higher, there would have been higher competitive bidders.”
Grubb filed for bankruptcy protection late last month. — Zachary Kussin