Mattress Maker Corsicana Seeks Court OK on $125 Million Bid

Corsicana Bedding LLC, a bankrupt mattress manufacturer, is seeking court approval for an asset sale auction with Blue Torch Finance’s $125 million offer as the opening bid.

The auction aims to sell “substantially all” of its assets, Dallas-based Corsicana said in an approval request filed Wednesday in the US Bankruptcy Court for the Northern District of Texas. Blue Torch’s stalking horse bid is a credit bid, allowing Corsicana to reduce its debt by $125 million.

Blue Torch also has committed to provide a debtor-in-possession loan to Corsicana.

The new financing proposal and cash from ongoing operations are “expected to enable ...