Fifth Offer from Barber to Buy Back Company
January 31, 2011
The fifth time was not the charm for John and Susan Barber in their attempt to purchase back the assets of their company. After four failed attempts to buy back the assets of the company that bears his name, John Barber made a fifth offer on January 21, which, too, was denied. Court documents note that counsel for Grant Thornton, receiver and asset manager, received the offer from Barbers wife, Susan, which was emailed by Alex Jurshevski of Recovery Partners, a consulting firm that has represented the Barbers during the sale process.
The offer was deemed unacceptable by the receiver for a number of reasons. First, it was less than the aggregate value of the net minimum guaranteed amounts under the two creditor agreements referenced. The agreement contemplated a nominal refundable cash deposit that was not submitted with the offer. Court documents also note that although the fifth offer is not conditional on financing, Susan Barber has failed to provide evidence of financing despite requests.
On January 27 Grant Thornton was served with an unsworn copy of an affidavit of John Barber. Court documents note that while the receiver disagrees with the number of objections raised it is of the view that responding to the Barber affidavit on a point by point basis would not add additional value beyond the information already before the court ...
The documents also note, The receiver does not doubt the Barbers good faith efforts to secure financing, but does seriously doubt their ability to secure financing of an amount sufficient to complete the transaction contemplated by the fifth Barber offer, even if it were otherwise acceptable.
A hearing was held today in a Canadian court to decide whether or not to allow Grant Thornton, to sell off the company's assets piecemeal. USGNN.com spoke briefly to John Barber today who told us a decision had not yet been made.
Stay tuned to USGNN.com for more updates as they are made available