The motion was uncontested and its approval puts the North York-based confectioner back on the market. But it does not preclude the buyer in that deal from making another bid after it failed to close on the first arrangement within the prescribed timeframe.
Wolfgang filed for Chapter 11 bankruptcy protection in March, and a judge in August approved a plan for a sale of company assets and a lease agreement for Wolfgang real property.
Earlier this week, Wolfgang debt holder M&T Bank filed a motion to vacate the court order approving the sale of Wolfgang assets to Divine Serendipity LLC and to terminate the associated asset purchase agreement, according to the filing.
The asset purchase agreement had required M&T be paid $885,000 on or before Aug. 29 and a lease agreement commencing Sept. 1 requires real estate lease payments of $10,000 per month, the filing stated, but the deal has not closed.
Wolfgang has heard from other interested potential bidders, said Larry Young, the attorney representing Wolfgang in bankruptcy proceedings. The judge vacating the previous agreement frees up Wolfgang to consider other possible deals, he said.
Divine Serendipity President and CEO William “Wayne” Sellers said he continues to work to line up the financing he needs within 10 days and plans to make another offer accordingly.