Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Merit Group, Inc. > News item |
Merit Group seeks court approval to auction substantially all assets
By Caroline Salls
Pittsburgh, June 13 - Merit Group, Inc. requested court approval of the auction and bidding procedures for the proposed sale of substantially all of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of South Carolina.
Under the bid procedures, the company is not required to enter into a stalking horse bid. However, if it does elect to do so, Merit said it would enter into that agreement by June 30.
The company said any stalking horse agreement would include payment of a $1 million break-up fee and reimbursement of up to $1 million of sale-related expenses if that bidder was not the winning bidder at auction.
Bids are due by 5 p.m. ET on July 15, and the auction will be held on July 20.
Qualified bids must be equal to the amount of any stalking horse bid, plus the amount of the break-up fee and expense reimbursement and a $500,000 initial overbid amount.
Subsequent bids at auction must be for at least $250,000 more than the previous bid.
The company said the sale must close by 11:59 p.m. ET on Aug. 12.
Merit, a Spartanburg, S.C., paint sundry distributor, filed for bankruptcy on May 17. The Chapter 11 case number is 11-03216.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.