We’re now less than a week away from the February 12 bankruptcy hearing. But this morning, PW reporter Jim Milliot revealed that one of the two mystery buyers was the National Book Network. NBN made a better offer to PGW clients than Perseus. NBN plans 85 cents on the dollar and only a three-year contract extension (as opposed to Perseus’s 70 cents and four years). Further, NBN has filed an unsecured claim to retrieve the remaining funds, instead of an administrative claim. This is a good sign that NBN might be spreading some of the monies around to the creditors. Galleycat has a memo of NBN’s offer for your perusal.
Radio Free PGW, in a shocking digression from its trademark cynicism, has signaled its approval of NBN, writing, “Hopefully, this will mark an end to the hard sell and arm twisting, and we hope to never hear the words ‘sixty-five percent’ again.”
Of course, since many PGW clients have signed agreements with Perseus (and from what I can determine, these agreements are by no means final; Perseus must have 65% of the PGW clients signed on before the February 12 hearing for the deal to go through), it will be interesting to see how this showdown between NBN and Perseus plays out. And what of the third rumored AMS purchaser? Will we see 90 cents on the dollar and two years? 110 cents on the dollar and six months? Come on, indie presses, hold out and watch these titans tear their follicles out while trying to woo you!
© 2007, Edward Champion. All rights reserved.