Katy Industries filed with the U.S. Bankruptcy Court a motion authorizing the Company to consent to and take any further actions that it determines are reasonably necessary or appropriate to consummate, the sale of a real estate parcel of land located in Denison, Texas (“Denison Parcel”). The Denison Parcel is owned by non-debtor subsidiary W.J. Smith Wood Preserving Company and is being sold to EIP Communications I.
The motion explains, “The proposed sale transaction contemplates that the Denison Parcel will be sold for $400,000 in a private sale after an extensive, multi-month marketing process and following arm’s-length negotiations with the Buyer. Upon the closing of the Denison Sale, the net proceeds from the Denison Sale will be disbursed directly to Jansan Acquisition, the purchaser of substantially all of the Debtors’ assets, in accordance with, and as required by, the Final APA and the Sale Order. Katy submits that it has exercised its reasonable business judgment, subject to this Court’s approval, to consent to and authorize the Denison Sale, which Katy has determined to be the most viable, fair, and best option currently available to maximize the value of the Denison Parcel and to fulfil the Debtors’ obligations under the Final APA.”
The Court scheduled a November 9, 2017 hearing to consider the motion, with objections due by November 2, 2017.
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