Former Chrysler's bid procedures for sale of Twinsburg plant approved

By Lisa Kerner

Charlotte, N.C., Feb. 25 - Old Carco LLC, formerly Chrysler LLC, received court approval for its bid procedures for the sale of its Twinsburg, Ohio, stamping plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Twinsburg Industrial Park LLC is the stalking horse bidder and agreed to buy the property for $27.5 million.

The court approved the $600,000 break-up fee payable to Twinsburg Industrial.

As previously reported, bids would be due by March 5 in increments of at least $100,000 from the purchase price, and terms proposed in the baseline bid are as outlined in the purchase agreement.

An auction would be held on March 10 and a sale hearing would be held on March 11 under the proposed bid procedures.

The property is pledged as collateral to secure the company's first-lien credit agreement.

Old Carco, an Auburn Hills, Mich.-based automotive company, filed for bankruptcy on April 30. Its Chapter 11 case number is 09-50002.

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