Trainor Glass Motions for Sale of Modular Wall Business to Environamics for $800,000
July 24, 2012

by Erica Terrini, eterrini@glass.com

Trainor Glass Co. has filed a motion for approval of sale of certain "modular wall assets, free and clear claims, liens and encumbrances" to Charlotte, N.C.-based Environamics Inc. If approved, the company intends to pay Trainor $800,000 for the assets included in the sale.

According to court documents, Trainor previously operated an interior modular wall manufacturing facility based in Farmers Branch, Texas. Soon after the company's filing for Chapter 11 Bankruptcy in March 2012, Trainor Glass entered into an asset purchase agreement with Environamics for the sale of its Trainor Modular Walls business for the price of $800,000, provided the U.S. Bankruptcy Court for the Northern District of Illinois grants approval.

The terms of the sale call for an auction of Trainor's assets that will be scheduled following the court's approval of the company's motion. The date and time have yet to be set but the purchase agreement includes auction procedures to include opening offerings be no less than $25,000 and project a sale hearing to authorize the purchase following the auction to be held sometime in August 2012.

Additionally, the purchase agreement requires the buyer to "remove all of the purchased assets from the Farmers Branch facility no later than August 31, 2012, or arrange with the owner of the [facility] to lease [the facility] commencing September 1, 2012."

According to the motion for approval of sale, the purchase agreement claims if Environamics is the successful bidder, the buyer could stand to acquire the following: "The purchased assets consist of … all equipment located at the Farmers Branch facility … all inventory, packaging and other personal property located at the [facility] … the goodwill of the Trainor Modular Business and the trade name 'Trainor Modular Walls' … [and] a copy of all computer files related to completed projects and projects in progress of the Trainor Modular Wall business at [the] time the business ceased operations."

The motion for approval also claims Trainor has reached out to 19 potential buyers and released 13 confidentiality agreements for its modular wall business but company officials "believe that the Environamics offer, subject to higher or better bids, is the best offer for the purchased assets."

The motion for sale approval and notice of auction filed by Trainor comes after the company was granted approval for the sale of its assets in Florida, North Carolina, Virginia and Texas to Harmon Inc. for an amount totaling roughly $3 million. Trainor filed the motion for approval of that sale in May 2012 and it was approved on May 31. The sale to Harmon excluded Trainor's modular wall assets, according to the purchasing agreement it filed with the court.

At press time, the court had not yet ruled on the motion for approval of the sale.

This story is an original story by USGlass magazine/USGNN™. Subscribe to USGlass magazine.
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