Entertainment Promotions had filed a petition for Chapter 7 Bankruptcy last month.
As of now, the comapny is selling its 2013 Entertainment Book memberships online and its Spring Entertainment fundraising programs have resumed. The company states that contracts entered into prior to its bankruptcy petition date are valid and it will honor its obligations.
Here’s how that’s possible: The company’s Chapter 7 trustee, who is appointed by the U.S. Department of Justice, was given the go-ahead by the Delaware Bankruptcy Court to resume operations through late April, when it is expected that the company will be sold.
According to company statements, the Chapter 7 trustee received an offer of $11.3 million from HSP-EPI Acquisitions, LLC to purchase Entertainment Promotions. Among the members of this organization is Lowell Potiker, son of Hughes and Sheila Potiker, who founded Entertainment Promotions 50 years ago.
What’s more, the company reports there will be an auction for Entertainment Promotions on April 19 and it is expecting multiple bidders.
Last month, Entertainment Promotions had voluntarily filed for Chapter 7 in the U.S. Bankruptcy Court in the District of Delaware. Typically, a Chapter 7 filing means a liquidation of the business, with assets sold to pay off creditors.