Former Bowe Bell + Howell, asset buyer seek enforcement of sale order

By Caroline Salls

Pittsburgh, Dec. 9 - Mail Systems Liquidation, Inc., formerly Bowe Bell + Howell, and the buyer of its assets are asking the U.S. Bankruptcy Court for the District of Delaware to order Bowe Systec GmbH to comply with the sale order, according to a Thursday court filing.

The company said Bowe Systec has continued to use and refused to surrender some software and intellectual property to the buyer that was owned and developed by the company's U.S. debtors.

"The withheld assets are an integral component of the acquired assets, without which the purchaser is unable to address its customers' software issues and is unable to address changes in postal regulations," the company said in the motion.

Mail Systems Liquidation and the buyer have also reserved their rights to seek contempt sanctions against Bowe Systec for the fees and expenses related to the motion.

As previously reported, Bowe Bell + Howell received court approval in June to sell substantially all of its assets to Versa Capital Management, Inc. and co-investment partner Access Value Investors, Inc. via credit bid.

Versa holds a majority of the company's outstanding secured debt, which was resolved through the sale. The credit bid included an $80 million U.S. amount and a C$302,000 cash bid amount.

The company has requested a Dec. 14 hearing.

Bowe Bell + Howell, a Wheeling, Ill., provider of high-performance document management services, filed for bankruptcy on April 18, 2011. The Chapter 11 case number is 11-11187.

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