North Mill Equipment Finance received approval on Monday from the U.S. Bankruptcy Court for the District of Delaware to acquire Pawnee Leasing Corporation and its affiliated assets through a court-sanctioned sale process. The sale is expected to close on March 31, 2025, according to a representative from North Mill.
The transaction was authorized under Chapter 15 proceedings tied to the insolvency of Chesswood Group Limited, Pawnee’s Canadian parent company. The court recognized and enforced a Canadian order approving the sale, allowing the deal to proceed “free and clear of all liens, claims, encumbrances, and other interests,” according to the court’s March 24 order.
The sale followed a court-approved sale and investment solicitation process (SISP) initiated in Canada in December 2024. The Canadian court entered a vesting order on March 7, 2025, approving the asset purchase agreement between the debtors and North Mill.
The court found that the transaction was negotiated in good faith, at arm’s length, and for fair market value. It also ruled that North Mill is not a successor to the debtors and will not assume any liabilities other than those explicitly agreed upon.
The deal includes all of Pawnee Leasing’s and Tandem Finance’s purchased assets, while certain excluded assets and liabilities are being transferred to a newly created entity, ResidualCo.
“This transaction represents a sound and reasonable exercise of the Debtors’ business judgment,” the court stated, emphasizing that the sale provides value and is in the best interests of the estates and stakeholders.
With the closing of the transaction, the Chapter 15 cases for Pawnee Leasing and Tandem Finance are set to be closed.
The sale proceeds will be used to repay Chesswood’s debtor-in-possession and pre-filing lenders, as outlined in the DIP financing agreement.
The transaction was finalized under U.S. Bankruptcy Judge Craig T. Goldblatt.
