Manistique Papers: court approves bid procedures for asset sale

By Lisa Kerner

Charlotte, N.C., Dec. 13 - Manistique Papers Inc. was granted approval of its proposed procedures for the sale of substantially all of the company's assets by the U.S. Bankruptcy Court for the District of Delaware on Tuesday, according to an attorney familiar with the case.

The sale auction is set for Feb. 22, and the sale hearing is Feb. 28, the attorney said.

The primary asset of the company is its 500-ton-per-day recycled paper mill along the Manistique River in Manistique, Mich.

As previously reported, the proposed procedures maintain the ability to establish a stalking horse sale process.

A hearing is scheduled for Jan. 17 to consider the mid-process selection of a stalking horse.

The deadline for submitting a stalking horse bid is Jan. 12.

Bids must be accompanied by a 10% deposit.

The minimum overbid must be $100,000 more than the stalking horse bid, if any, and include any stalking horse fees.

The debtor-in-possession lender, mBank, is considered a qualified bidder and may submit a credit bid.

Manistique Papers, a Manistique, Mich., recycled-fiber specialty paper producer, filed for bankruptcy on Aug. 12. Its Chapter 11 case number is 11-12562.

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