Precision Parts gets court OK of bid procedures for sale of substantially all assets

By Jennifer Lanning Drey

Portland, Ore., Jan. 15 - Precision Parts International Services Corp. obtained court approval of the bidding procedures for the proposed sale of substantially all of its assets, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company has until Jan. 30 to select a stalking horse bidder.

Under the proposed bid procedures, Precision Parts will provide expense reimbursement of up to $100,000 for the selected stalking horse bidder if it is not the highest bidder.

Bids are due by 4 p.m. ET on Feb. 6 and must include a 10% deposit.

An auction will be scheduled if multiple bids are received.

When requesting the approval, Precision Parts said it believed an immediate sale of its operating business was critical to preserving the value of the business for the benefit of its creditors and stakeholders.

The company's debtor-in-possession financing terminates on March 2, and the financing order provides for liquidation of Precision Parts' assets.

The sale hearing is scheduled for Feb. 25.

Precision Parts, a Rochester Hills, Mich., designer and manufacturer of high-precision metal components and subassemblies, filed for bankruptcy on Dec. 12. Its Chapter 11 case number is 08-13289.

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