Judge denies financing motions in Wolfgang bankruptcy caseBrent Burkey
The motions were for court permission to use Wolfgang assets for financing, said Larry Young, attorney with York-based CGA Law Firm.
The judge denied the motions because the plan would not have been able to cover, up front, the full $885,000 purchase price agreed to in the sales agreement and debt holder M&T Bank did not consent under the terms, Young said.
Negotiations continue toward finding an agreeable way for buyer Divine Serendipity LLC to close the deal, he said. Meanwhile, the business is still open, operating and taking orders, Young said. Company officials are hopeful the sale will still happen, he added.
North York-based confectioner Wolfgang filed for Chapter 11 bankruptcy protection in March, and a judge approved the plan in August for a sale of company assets and a lease agreement for Wolfgang real property.