STAR Dynamics $5 million asset sale includes credit for secured debt

By Caroline Salls

Pittsburgh, Aug. 22 – STAR Dynamics Corp. requested court approval of the proposed $5 million sale of substantially all of its assets to Mwagusi, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

STAR Dynamics said the purchase price will be paid by a dollar-for-dollar credit applied toward the secured debt it owes to Resort Development of Destin, Inc., which would be otherwise entitled to receive any sales proceeds.

The company said Mwagusi Buyer intends to employ some of STAR’s employees, and it will be able to carry on some portion of STAR’s business.

Specifically, STAR said the buyer would continue to work on advanced radar technology that several countries, including the United States, seek to utilize as part of their missile defense systems.

Also under the proposed purchase agreement, STAR will be allowed to retain its cash and accounts receivable, which will be applied toward priority administrative expenses.

Competing bids for the assets must be in cash and exceed Mwagusi’s bid by $25,000. If there are competing bids, subsequent bids must be made in minimum increments of $25,000.

STAR Dynamics, a Hilliard, Ohio-based instrumentation radar systems company, filed for bankruptcy on Dec. 10, 2013. The Chapter 11 case number is 13-59657.

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