Court seeking bids for Alamo Iron Works
The United States Bankruptcy Court for the Western District of Texas is still accepting bids for the assets of Alamo Iron Works, which filed for bankruptcy protection in April.
Earlier this month, Alamo Iron Works posted a press release on its Web site that said the company entered into an agreement, subject to bankruptcy court approval, to sell substantially all of its assets to Industrial Distribution Group, which is owned by Texas-based investment group Luther King Capital Management.
IDG submitted a "stalking-horse bid" to the bankruptcy court, which is an initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company.
The court is overseeing the sale of all of the assets of Alamo Iron Works (AIW), San Antonio, Texas, in a "363 sale," named for Section 363 of the U.S. Bankruptcy Code.
The use of Section 363 sales as part of the Chapter 11 reorganization process creates investment opportunities for a variety of prospective buyers, including creditors, lenders, and even less traditional investment vehicles, such as private equity funds.
IDG's initial bid is subject to higher offers in an auction to be completed by early June. Additional bids are due by May 27. AIW retained NHB Advisors Inc., a New York-based turnaround, crisis management and financial advisory firm, to seek additional bidders. Interested bidders may contact managing director John Keefe at (212) 907-6438 or jkeefe@nhbteam.com.
In its court filing, AIW listed assets of $18.1 million and total liabilities of $19.3 million.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
