By Jacqueline Palank
The majority owner of the company behind the AVP Pro Beach Volleyball Tour scored big this week, receiving bankruptcy-court approval to buy the company after no rival bidders stepped up to the net.
According to the docket in AVP Inc.’s Chapter 11 proceeding, a California bankruptcy judge on Thursday signed off on the sale of nearly all of the company’s assets to DFA PVA II Partners LLC, a “designee” of secured lender and majority stakeholder RJSM Partners LLC. Court papers show the firm offered cash and debt forgiveness in exchange for such assets as the AVP name, intellectual property, the Avp.com domain name, furniture and equipment. RJSM managing director Nick Lewin told the Associated Press that the total amount of debt forgiveness was $3.8 million.
Lewin also said the beach-volleyball tour — which draws athletes who have also competed in the Olympics, like two-time gold medalist Misty May-Treanor — will resume next year, albeit with a different financial model.
As Bankruptcy Beat previously reported, AVP Pro Beach Volleyball Tour had been looking for a buyer since the summer, when its lack of funds forced it to spike the remaining five events of its 2010 beach-volleyball season.
Both AVP Pro Beach Volleyball Tour Inc. and parent AVP (which stands for “Association of Volleyball Professionals”) sought Chapter 11 protection on Oct. 29. They quickly filed a motion to sell their assets to the highest bidder at an auction, in light of the “urgent and challenging circumstances” the companies found themselves in.
Stay tuned for news and updates on the AVP Volleyball Tour for 2011
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beach volleyball – stay tuned for more updated articles on information
on the 2011 beach volleyball schedule for the AVP and Pro Beach Volleyball Association.