Newmark inches closer to buying Knotel

Newmark Group Inc. inched closer to buying Knotel Inc. after a subsidiary of Newmark was the only participant in the stalking-horse auction for the bankrupt flexible office space provider, Commercial Observer reported.

The bidding process for Knotel ended March 12, according to the report, citing a document filed in Delaware bankruptcy court.

Knotel and its U.S. subsidiaries filed for Chapter 11 bankruptcy in February and agreed to sell the business to a Newmark affiliate.

Newmark provided roughly $20 million in cash to support Knotel through the bankruptcy. It also made a $70 million stalking-horse bid to buy the company, according to the report.

The acquisition is subject to the approval of the Delaware court, which set a March 18 hearing for the sale, the report added.

A Knotel spokesperson did not immediately respond to Commercial Observer's request for comment.