 
Benada Aluminum Motions to Sell Specific Extrusion
and Related Assets to Tubelite for $2.9 Million
September 10, 2012
by Penny Stacey, pstacey@glass.com
Benada Aluminum Products LLC, which filed
for Chapter 11 bankruptcy in August, has motioned for approval
of an asset sale of certain of its extrusion equipment and related
assets to Tubelite Inc. for a purchase price of $2.9 million. The
motion was made in the U.S. District Court for the Middle District
of Florida, where the case currently is under review.
Tubelite had emerged as the successful bidder after Benada issued
a notification of intent to sell the equipment in August, and 12
potential purchasers expressed interest. Among the others who bid
on the company were RL Best, Pries Enterprises, RKM Engineering
and Spectra Aluminum, with initial bids ranging between $1 million
and $2.5 million. After several rounds of bidding, Tubelite prevailed
"as the successful bidder to acquire the property"-coming
in just above RL Best's final bid of $2.8 million.
According to Benada's motion, company officials "have determined
that the sale of the property would be beneficial to the estate
[and] that the purchase price is fair and reasonable."
If the asset sale is approved, creditor Wells Fargo will receive
80 percent of the sale proceeds, while the remaining 20 percent
will be used by Benada "to continue to fund its operations."
If approved, the sale includes the company's RL Best 2750/3000-Ton
Hydraulic Press; an RL Best handling system; a Granco Clark log
heating furnace; a Granco Clark hot log cutoff saw; a log saw to
press billet transveyor; a die oven; a Belco Reversing End Flow
age oven with triple-lane powered conveyors; any and all manuals
related to operation, use and maintenance of the extrusion line
assets; and any and all unexpired manufacturer's warranties with
respect to the extrusion line assets. According to documentation
filed in the case, the machinery was part of Florida Extruders International's
3000 Ton Press Equipment, which Benada
acquired in June 2011.
If the court approves the sale, a deposit of $200,000 will be due
from Tubelite, $2.45 million at closing, and $250,000 within 15
business days after delivery of all extrusion line assets to the
company's facility in Reed City, Mich.
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