Precision Parts requests court OK of bid procedures for sale of substantially all assets

By Jennifer Lanning Drey

Portland, Ore., Jan. 12 - Precision Parts International Services Corp. requested court approval of the 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 Delaware.

The company has until Jan. 30 to select a stalking horse bidder.

Under the proposed bid procedures, Precision Parts would provide expense reimbursement of $100,000 for the selected stalking horse bidder if it is not the highest bidder.

Bids are due by 4 p.m. ET on Feb. 6 and must include a 10% deposit.

An auction will be scheduled if multiple bids are received.

Precision Parts said it believes an immediate sale of its operating business is critical to preserving the value of the business for the benefit of its creditors and stakeholders.

The company's debtor-in-possession financing terminates on March 2, and the financing order provides for liquidation of Precision Parts' assets.

Precision Parts requested a hearing on the proposed bid procedures be held Jan. 14.

Precision Parts, a Rochester Hills, Mich., designer and manufacturer of high-precision metal components and subassemblies, filed for bankruptcy on Dec. 12. Its Chapter 11 case number is 08-13289.

© 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.