Alabama pension funds are likely to become the new owners of iPic Entertainment Inc., a luxury movie theater chain that went bankrupt in August, WSJ Pro Bankruptcy reported. In an auction in New York, an investment vehicle formed by the Teachers’ Retirement System of Alabama and the Employees’ Retirement System of Alabama was the successful bidder for the Boca Raton, Fla.-based business, which had filed for bankruptcy after skipping an interest payment to one of the funds. The systems’ $50.9 million “credit bid” — a common tool in bankruptcy auctions in which monies owed are used as currency — beat a $48.8 million backup bid by Cinemex Holdings USA Inc., according to a filing Friday in U.S. Bankruptcy Court in Wilmington, Del. Cinemex and the two funds’ iPic Theaters LLC were the only two qualified bidders participating in the auction, records show. The purchase is subject to court approval. A sale hearing is scheduled for Oct. 28.
