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Cogir building sold out of bankruptcy to affordable housing nonprofit

Editorial Disclosure: Village News is among the creditors included in the Chapter 11 bankruptcy of Contour Opco.

On Dec. 20, 2023, the U.S. Bankruptcy Court approved the sale of the building at 1733 S. Mission Road in Fallbrook, currently known as the Cogir Senior Living facility. It was sold to AOF Pacific Affordable Housing Corp for $20,650,000, according to court documents received by Village News.

According to the court documents, AOF Pacific Affordable Housing Corp was the sole qualified bidder, and the sale occurred at an auction conducted on Dec. 15, 2023, at 9:30 a.m.

Prior to the auction, the debtors filed a Notice of Entry into a Stalking Horse Agreement, identifying AOF Pacific Affordable Housing Corp as the stalking horse bidder and attaching the Agreement of Sale and Purchase.

On Dec. 15, 2023, the debtors submitted the 'Debtors' Motion to Approve Sale of Property Free and Clear of Liens, Claims, Interests, and Encumbrances, and Assumption and Assignment of Executory Contracts.' The sale included the Debtors' assets, such as Real Property, Personal Property, and Fixtures, along with any warranties on such Personal Property and Fixtures.

What is a Stalking Horse Agreement?

A Stalking Horse Agreement, in the context of a bankruptcy auction, refers to a preliminary bid on the assets of a bankrupt company. This bid, arranged in advance of the auction by the debtor, sets a minimum price to prevent low bids. Its purpose is to maximize the value of the bankrupt company's assets by fostering a competitive bidding environment and ensuring that the assets are not sold below their worth.

After the stalking horse bid is placed, other potential buyers may submit competing bids. The auction process is designed to be transparent and competitive, ensuring the highest possible price for the assets. The entire process, including the selection of the stalking horse bidder and the terms of the agreement, must receive approval from the bankruptcy court overseeing the sale."

This is an early version of the story. More information will be reported as it becomes available. The Village News has contacted AOF for comment.

 

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