U.S. Bankruptcy Judge Shelley D. Rucker gave approval Monday to an order that is in essence the first step toward clearing the way for Jones CapitalCorp to acquire Hardwick Clothes.
The order extends the “exclusivity period” Hardwick has under bankruptcy laws allowing the company the exclusive right to file a Chapter 11 reorganization.
The order allows Hardwick until June 30 to file a plan of reorganization.
While it has not been submitted to the court with official documents, the most likely next course of action would be for Hardwick’s plan to center around the sale of the company to Jones CapitalCorp.
Allan Jones announced March 19 an agreement had been reached to purchase the company for $2 million.
The next stop on the legal calendar will be April 10, when the court could authorize the Hardwick sale and establish bidding procedures.
Those bids, according to court documents, would have to be submitted by May 1 if the court approves the suggested bidding procedures.
If there are no opposition bids, the proposed schedule calls for a court hearing that same day at 1:30 p.m. to approve the sale.