E-cigarette maker NJOY received bankruptcy-court approval to sell itself to New York investment firm Homewood Capital in a deal valued at more than $30 million, the Wall Street Journal reported today. Bankruptcy Judge Christopher Sontchi authorized the sale this week, according to court papers. Through a credit bid, Homewood offered to forgive $29.5 million in debt in exchange for the assets. The investment firm also offered to take responsibility for NJOY’s senior loan debt and will pay at least $560,000 in cash as part of the transaction, court papers say. Three years ago, Homewood Capital contributed to a $75 million round of funding in the e-cigarette producer, according to an NJOY statement. Mr. Teitelbaum joined NJOY’s board of directors at the time, the company said. NJOY had a one-member board at the time of its chapter 11 filing, court papers say.
