Highway Technologies gets green light for branch sales, bid procedures

By Jim Witters

Wilmington, Del., June 27 - Highway Technologies, Inc. received approval for the sale of its Minnesota and Montana branches and for bid procedures for the sale of its Denver branch during a June 27 hearing in the U.S. Bankruptcy Court for the District of Delaware.

Branch sales

Highway Technologies sold the inventory, equipment and certain contracts and leases of its Minnesota branch to SSJS, Inc. for $5.6 million.

SSJS was the stalking horse bidder with an offer of $2.5 million, but another bidder emerged at $2.65 million, and the sale price rose further during a June 24 auction.

Highway Technologies also sold the inventory and equipment in its Montana branch to Mountain West Holding Co. for $2.75 million.

Mountain West was the stalking horse bidder, and no other bids were submitted.

Bid procedures

Judge Kevin J. Carey also approved the bidding procedures for the sale of the company's Denver branch assets.

The stalking horse bidder, RDP Barricade Co., LLC, has offered $775,000.

Under the approved procedures:

• The bidding deadline is noon ET on July 5;

• An auction, if necessary, will be conducted on July 9;

• Initial overbids must exceed the RDP bid by $50,000;

• If RDP does not emerge as the successful bidder, it will be entitled to a 5% breakup fee and expense reimbursement; and

• A sale hearing is scheduled for 1:30 p.m. ET on July 11.

Hilco as liquidator

The company also received approval to hire liquidator Hilco Industrial, LLC and financial adviser Imperial Capital, LLC to handle the private sale transactions or auctions for personal property assets and bulk assets.

Those assets include cones, barricades, delineation devices, message boards, arrow boards, thermo trucks, epoxy/poly trucks, paint trucks, grinder trucks, barricade lights, signs and sign-stands, barricade trucks, barrier walls, guardrail trucks, among other things.

The inventory and equipment is not easily or readily movable due to its size, weight, or quantity or is currently being used on active highway projects and other job site locations across 13 states, the company says.

The debtors want to schedule additional auctions in their reasonable business judgment to effectuate the sales of any of the assets that are not sold at any of the initial auctions.

The private sale transactions and auctions will be conducted on an asset-by-asset basis, in lots, or combinations of lots.

If more than one potential buyer emerges for an asset, an auction would be conducted. Otherwise, the debtors and their representatives would negotiate a price with the lone bidder.

Hilco is to receive 7% of the gross proceeds from inventory and 15% of the proceeds from machinery, equipment, rolling stock, furniture and fixtures.

Highway Technologies, a Houston-based highway safety services and equipment provider, filed for bankruptcy on May 22. Its Chapter 11 case number is 13-11326.

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