| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Axium International, Inc. > News item |
Axium stalking horse bidder seeks return of deposit, payment of expenses and break-up fee
By Caroline Salls
Pittsburgh, Aug. 5 - Axium International, Inc. stalking horse bidder Barry Olson and Vedior North America, LLC asked the U.S. Bankruptcy Court for the Central District of California to enforce its order approving the sale of Axium's assets and to instruct the company to return a $375,000 deposit paid under the sale agreement, according to a Monday court filing.
Olson and Vedior are also seeking the reimbursement of $218,605 in expenses incurred by Olson and partially funded by Vedior. Olson is also asking the court to order Axium to pay him a $225,000 break-up fee since he was ultimately not the high bidder for the assets.
According to the motion, Olson was the only party willing to commit to a sale "in the chaotic first days" of Axium's bankruptcy case, signing a letter of intent and arranging for Vedior to post a $375,000 deposit just days after a Chapter 7 trustee was appointed.
Olson also agreed to provide interim management and operational services to Axium during and after the sales process.
In fact, according to the deposit return motion, it was only after Olson helped to stabilize the company's business that competitors became interested in acquiring the assets, and Olson even assisted eventual buyer MPS Group, Inc. in its due diligence efforts.
However, Olson and Vedior said the trustee has refused to return the $375,000 deposit to Vedior or to reimburse Olson and Vedior for their sale-related expenses, in violation of Olson's original letter of intent.
A hearing is scheduled for Sept. 10.
Axium, a Los Angeles-based provider of payroll and human resources services, filed for bankruptcy on Jan. 8. Its Chapter 7 case number is 08-10277.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.