KHEPRA PULLS PLAN, WILL SELL ASSETS NOV. 7
Byline: Vicki M. Young
NEW YORK — Khepra Beauty Group, which withdrew its plan of reorganization Thursday, will sell its assets for at least $3.4 million to Riviera Concepts Nov. 7 at a bankruptcy court auction if no higher bidder appears.
Khepra had hoped to have Manhattan Bankruptcy Court Judge Stuart Bernstein confirm its reorganization plan, which was keyed to a sale of its assets to Riviera for $3.4 million. The plan, however, was contingent on a minimum 36-month extension of a Euroitalia distribution agreement, which is set to end Dec. 31.
Khepra’s counsel told Judge Bernstein at a hearing Thursday that the company was withdrawing its reorganization plan because Euroitalia wasn’t going to decide “at this time” whether to extend the distribution agreement beyond Dec. 31.
Khepra, in bankruptcy proceedings since April 1996, has a binding purchase agreement with Riviera, and attorneys told Judge Bernstein that Riviera appears to be the “only bidder.”
The terms of the original Khepra/Riviera deal have been changed, and the new terms are not yet available. Khepra’s counsel told Judge Bernstein that the purchase price could rise because of an increase in Euroitalia inventory.
Currently Khepra holds the Adrienne Vittadini license and the distribution rights from Euroitalia for Dolce & Gabbana, Moschino and Joseph Abboud products. Khepra is also the sales agent for Michel Germain products.
Khepra’s chairman, Byron D. Donics, is expected to become a senior executive and part owner of the new Riviera entity.