Quaker Fabric granted court approval of bid procedures for sales of substantially all assets

By Caroline Salls

Pittsburgh, Aug. 29 - Quaker Fabric Corp. obtained court approval of the bid procedures for the proposed sales of the company's intellectual property, inventory, machinery and equipment, and real estate for its Fall River, Mass., Bleachery Pond property, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the Gordon Brothers Group submitted a $27 million stalking horse bid for Quaker's intellectual property, inventory, machinery and equipment, and real estate, and the Atlantis Charter School submitted a $2.6 million stalking horse bid for the company's Fall River, Mass., Bleachery Pond property.

Neither purchase agreement requires the payment of a break-up fee, but if Gordon Brothers is not the high bidder for the bulk assets, it will receive $350,000 for expense reimbursement, and if the school is not the high bidder for the Bleachery Pond property, it will receive $25,000 for expense reimbursement.

All competing bids for all or a portion of the assets must be submitted by Sept. 12 and must include a deposit of 10% of the proposed purchase price.

Initial overbids for the bulk assets must be for at least $27.6 million and must be made in increments of at least $100,000 thereafter.

Initial overbids for the Bleachery Pond property must be for at least $2.65 million and must be made in increments of at least $25,000 thereafter.

The auction is scheduled for Sept. 17, and the sale hearing will be held Sept. 19.

Quaker Fabric, a Fall River, Mass., designer, manufacturer and marketer of woven upholstery fabrics for residential furniture, filed for bankruptcy on Aug. 16. Its Chapter 11 case number is 07-11146.

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