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Loot Crate Inc., the “geek and gamer” subscription business backed by actor Robert Downey Jr.’s venture-capital firm, plans to sell itself for more than $30 million to a creditor that will use the debt it is owed as currency, the Wall Street Journal reported. The proposed deal with a Money Chest LLC affiliate will be subject to higher and better bids in a potential auction supervised by the U.S. Bankruptcy Court in Wilmington, Del. Money Chest is a lender and bondholder affiliated with an investor group that includes a large collectibles maker and distributor. Loot Crate said that when it filed for bankruptcy in August that it planned to sell itself to Money Chest. But at the time, no price tag was put on the anticipated purchase. Money Chest also is agreeing to provide a loan of up to $10 million to help Loot Crate get through bankruptcy. Loot Crate on Thursday submitted its purchase agreement with Money Chest affiliate Loot Crate Acquisition LLC to the court. The offer, which would serve as the floor price for Loot Crate assets, includes a $30 million credit bid, plus “many millions” of dollars to cover sales taxes, in addition to other costs, Mark Duedall, a Bryan Cave Leighton Paisner LLP lawyer representing Loot Crate, said at a hearing Tuesday.

A major showdown in the bankruptcy of Hahnemann University Hospital and St. Christopher’s Hospital for Children is slated for Wednesday afternoon, when a judge in Wilmington, Del., will be asked to approve the sale of Hahnemann’s medical residency programs to a consortium of six Philadelphia-area health systems for $55 million, the Philadelphia Inquirer reported. The unexpectedly high price is potentially a “game-changer” for the bankruptcy, Mark Minuti, the bankrupt hospitals’ lead attorney, with Saul Ewing Arnstein & Lehr LLP, said in court on Aug. 19. The children’s hospital will be subject to a separate sale process this month. But federal regulators at the Centers for Medicare and Medicaid Services (CMS) want the judge to block the proposed sale, which would ultimately redistribute Hahnemann’s 570 residency slots to the coalition members, saying it “is contrary to law and contravenes CMS regulations.” If the judge rules in favor of CMS, that could force Hahnemann’s parent company to find a new strategy to begin paying off creditors. Also at risk for the Philadelphia region, a health-care hub, is the loss of hundreds of highly sought doctors-in-training paid for by Medicare. Read more. 

For more on hospital and health care insolvencies, be sure to pick up a copy of the ABI Health Care Insolvency Manual, Third Edition from the ABI Bookstore. 

The former chief executive officer of Philadelphia Energy Solutions is seeking to buy and restart the 335,000 barrel-per-day PES refinery, which closed after a June fire, the former CEO and backers of the plan said in a statement yesterday, according to a Reuters report. Philip Rinaldi, who retired from PES in 2016, formed Philadelphia Energy Industries (PEI) as a vehicle to pursue the purchase, the statement said. “We can reinvigorate the site as an economic juggernaut that generates billions of dollars of revenue and provides thousands of high-paying jobs for our skilled professional and labor workforce,” Rinaldi said. PEI and RNG Energy Solutions, LLC have entered into a mutual cooperation agreement for the prospective development of renewable fuels and other projects together with the restart of the oil refinery “should PEI be ultimately successful in its acquisition efforts,” the statement said. Last week, biofuels company S.G. Preston Co became the first group to identify itself as a potential buyer of the PES site, which it wants to convert into a renewable energy operation. The bankruptcy court overseeing PES’ case will likely set a timeline for the submission of qualified bids, and the court will be required to sign off on any final deal. PES filed for chapter 11 protection on July 21, exactly a month after fire and blasts destroyed an alkylation unit at the PES plant. The company exited a previous bankruptcy in August last year.

Landry’s LLC, the owner of Bubba Gump Shrimp Co., Morton’s The Steakhouse, McCormick & Schmick’s and other chains, has made a $37.2 million offer to buy Restaurants Unlimited Inc.’s assets out of bankruptcy, WSJ Pro Bankruptcy reported. Restaurants Unlimited said in court papers yesterday that it would name Landry’s as the stalking-horse bidder at an upcoming auction, subject to bankruptcy court approval. Restaurants Unlimited filed for protection from its creditors in the U.S. Bankruptcy Court in Wilmington, Del. in July. The company has 35 full-service restaurants under brands that include Kincaid’s, Palomino, Henry’s Tavern, Stanford’s, Clinkerdagger and Cutters Crabhouse. It owes about $39 million to secured lenders and operates in six states, including Washington, Oregon and California.

As Charming Charlie Holdings Inc. closes its remaining stores, the retailer believes there is still a market for its trademarks, customer lists and other intellectual property, WSJ Pro Bankruptcy reported. The women’s accessories and clothing company, which last month filed for bankruptcy for the second time in less than two years, is seeking permission in bankruptcy court to hire Hilco IP Services LLP to sell assets that also include domain names and social media accounts. Bankruptcy Judge Christopher Sontchi has scheduled a hearing on the request next month in U.S. Bankruptcy Court in Wilmington, Del. Charming Charlie entered its most recent bankruptcy with $82 million in debt. It said that it planned to close its remaining 261 stores by the end of August. The company projected last month that its stores’ going-out-of-business sales would generate revenue of roughly $30 million. Charming Charlie had stopped online sales by the time it filed for bankruptcy, though it maintains a website. Hilco IP, which does business under the name Hilco Streambank, said that the trademarks for sale are Charming Charlie, Belle & Bumble and Charlie Girl, as well as their related domain names. Customer data comprises 6.8 million email addresses and 3 million snail-mail addresses.

Insys Therapeutics Inc, has entered into sales agreements to unload some of its drug assets for a combined $29.2 million as the Chandler, Ariz.-based pharmaceutical firm works through bankruptcy filing proceedings, ABC15.com reported. Insys will sell its naloxone and epinephrine nasal sprays and related assets and equipment to Hikma Pharmaceuticals USA Inc. for $17 million, according to a filing with the Securities and Exchange Commission . Per the purchase agreement, Eatontown, N.J.- based Hikma agreed to be responsible for cure costs and other specified liabilities. Insys also will sell its CBD formulations and other products to Chilion Group Holdings US Inc. for $12.2 million, according to the filing.

Agribusiness entrepreneur Frank Tiegs is expanding his Northwest food processing empire with the planned purchase of most of the assets of the NORPAC farmers' cooperative for about $149.5 million, the Capital Press reported. The transaction is expected to close in October as part of NORPAC’s chapter 11 filing, which will allow the company to remain operational while restructuring debt. Tiegs, whose Oregon Potato Co. is acquiring NORPAC, said that he was drawn to buy the processor due to the “premium” green beans grown in the Willamette Valley, as well as the broccoli, cauliflower, zucchini, squash and other crops produced in the region. The purchase will include NORPAC’s Oregon facilities in Brooks and Salem as well as its plant in Quincy, Wash. More than 140 farmer members own the NORPAC cooperative, which was founded in 1924 and is the biggest frozen fruit and vegetable manufacturer in the Northwest with about $310 million in annual sales. The company contracts with 220 growers across more than 40,000 acres in the region and has about 1,125 full-time employees and 1,100 seasonal employees during peak harvest season.