FTD Gift Unit Sale Proceeds Go to Repay Lenders (Corrected)

Bankrupt floral delivery service FTD Companies, Inc. may use the proceeds from the $18.1 million sale of its Personal Creations gifts business to repay lenders before selling the rest of its assets, despite protests by unsecured creditors.

U.S. Bankruptcy Court Judge Laurie Selber Silverstein approved the sale of the company’s gifts business at a hearing in Wilmington, Del., July 31, overruling objections from unsecured creditors who wanted the anticipated $15.1 million sale proceeds held in escrow until the rest of the company’s assets were sold.

“If something unforeseen happens, I may revisit this,” Silverstein said, adding that nothing in the ...