Ironclad Performance Wear’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Company’s asset purchase agreement, bidding procedures and stalking horse bid protections.
The creditors committee alleges, “The Committee does not object to the sale process in principle- the Committee welcomes a fair and transparent marketing effort that facilitates the long-term success of the Company, preserves jobs, maximizes value for the estates, and protects the rights of general unsecured creditors. However the sale process proposed by the Debtors and memorialized in the proposed Bidding Procedures and APA fails to achieve these objectives…the proposed Bidding Procedures contain the following provisions that operate to chill bidding and dissuade meaningful participation in the auction: The Matching and Overbid Provisions effectively allow Radians to double count the Break-Up Fee in certain bidding scenarios; The Break-Up Fee is excessive if the Aggregate Purchase Price is $15,000,000; Prospective overbidders must submit a deposit of $2,000,000 while Radians’ deposit is only $1,000,000; Radians credit bid rights are not subject to Bankruptcy Code Section 363 (k).”
Read more bankruptcy news.
The post Ironclad Performance Wear Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.