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Arandell Holdings sets bidding procedures for sale of all assets
By Sarah Lizee
Olympia, Wash., Oct. 1 – Arandell Holdings, Inc. is seeking approval of the bidding procedures for the sale of substantially all of its assets, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware on Wednesday.
The debtors have entered into a stalking horse asset purchase agreement with Arandell Acquisition Co., which was formed by Saothair Capital Partners and Farragut Mezzanine Partners III, LP, one of the debtors’ junior secured creditors, for the purpose of making the proposed acquisition.
Under the stalking horse agreement, the closing consideration is roughly $31,325,000, consisting of an aggregate cash amount equal to the sum of the DIP loan payment amount estimated to be $20.5 million, plus a credit bid by Farragut in the amount of $2.4 million and Arandell Acquisition’s assumption of the assumed liabilities.
The motion said the stalking horse agreement preserves the company’s business as a going concern.
Stalking horse protections include a $225,000 break-up fee and reimbursement of up to $550,000 for documented and reasonable out-of-pocket fees and expenses incurred in connection with the agreement.
The bid procedures provide for an initial overbid or a minimum bid increment of $100,000, plus the value of the stalking horse protections.
Competing bids are due by 5 p.m. ET on Nov. 13.
An auction, if needed, will be held on Nov. 18.
The debtors are seeking a sale hearing on Nov. 24 and to close the sale on or before Dec. 4.
A hearing is scheduled for Oct. 16.
Menomonee Falls, Wis.-based Arandell operates a web offset printer. The company filed Chapter 11 bankruptcy on Aug. 13 under case number is 20-11941.
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