Auction for Sale of Arch's Assets Scheduled
for January 13 in Miami; Bids Due This Friday
January 4, 2010
An auction for the sale of Arch Aluminum & Glass's assets is
scheduled for January 13 in Miami. Though Arch had named a stalking
horse bidder for the purchase of its assets when it filed for bankruptcy
on November 29, the auction will be held if one or more qualified
bids-in addition to that of the stalking horse bidder, Arch Glass
Acquisition Corp., an affiliate of Boulder, Colo.-based Grey Mountain
Partners LLC-is received by the January 8 deadline. Bids must be
filed by 5 p.m. Eastern Time on that day in the U.S. Bankruptcy
Court for the Southern District of Florida.
The auction is scheduled for 10 a.m. on January 13 and will be
held at the offices of Genovese Joblove & Battista P.A. A sale
hearing-during which the court will need to approve the sale to
the winning bidder-will follow at 9:30 a.m. on January 14 at the
U.S. Bankruptcy Court in Fort Lauderdale, Fla.
Bidders must submit several documents, including: a confidentiality
agreement; a statement demonstrating their "bona fide interest
in purchasing substantially all of the Purchased Assets" from
Arch; written evidence that they have received debt and/or equity
funding commitments or has "sufficient unrestricted cash to
consummate the purchase;" and a letter identifying themselves
and any other parties participating in the bid with them.
Court documents set forth several requirements for the bids themselves,
as well, and note that a bid will not be considered a higher or
better offer "unless such bid provides for the assumption of
the same amount of liabilities that the Stalking Horse Bidder is
assuming under the Purchase Agreement and provides for net consideration
to the Debtors' estates of at least $100,000 more than the
sum of the (i) cash portion of the purchase price provided by the
Stalking Horse Bidder in the Purchase Agreement, plus (ii) the amount
of the Break Up Fee
plus (iii) the amount of the Expense
Those who wish to participate in the bidding process were required
to have filed their notice of interest by today at 5 p.m. Eastern
In an earlier filing in the case, Arch indicated that it had begun
gathering bids prior to the filing to determine who the stalking
horse bidder might be, and had initially received 16 indications
of interest, and five final bids as of November 17, prior to choosing
the Grey Mountain affiliate (CLICK
HERE for related story).
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