Manistique Papers secures $12.3 million bid; auction set for April 17

By Caroline Salls

Pittsburgh, April 13 - Manistique Papers, Inc. received court approval to name MPI Acquisition LLC as the stalking horse bidder for substantially all of its assets, according to an April 13 filing with the U.S. Bankruptcy Court for the District of Delaware.

The proposed purchase price is comprised of a $12.3 million pre-adjustment closing amount, which can be adjusted by up to $500,000, plus the assumption of specified liabilities.

The company will pay MPI a $375,000 break-up fee and reimburse up to $125,000 of its bid-related expenses if it is not the high bidder at auction.

Bids are due by noon ET on April 16, except for mBank, which can submit a credit bid until 9 a.m. ET on April 17.

If necessary, the auction will be held on April 17. The sale hearing is also scheduled for April 17.

Competing bids must be at least equal to the amount of the stalking horse bid, plus the stalking horse bid fees and a $100,000 overbid amount.

Manistique Papers, a Manistique, Mich., recycled-fiber specialty paper producer, filed for bankruptcy on Aug. 12, 2011. Its Chapter 11 case number is 11-12562.

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