Standard Register bid procedures for $275 million asset sale allowed

By Kali Hays

New York, April 15 – Standard Register Co. received approval of bid procedures related to the sale of substantially all company assets under a Wednesday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company has entered a stalking horse agreement with an affiliate of Silver Point Capital, LP offering $275 million for Standard Register’s assets. A substantial portion of the purchase price is expected to be in the form of a credit bid from Standard Register’s pre-bankruptcy first-lien lenders.

If the Silver Point affiliate is not the high bidder, the company will reimburse up to $1.5 million of its sale-related expenses, according to the order.

The court did not approve a break-up fee of 2% and expense reimbursement of 1.5% proposed in the initial stalking horse agreement.

Competing bids are due by 5 p.m. ET on June 11 and must at least equal the sum of the purchase price and assumed liabilities, plus the break-up fee and expense reimbursement amounts and a $500,000 minimum bid increment.

If Standard Register receives one or more qualified bids, an auction will be held June 15 and a sale hearing will follow on June 17.

Standard Register is a Dayton, Ohio-based provider of business documents and related services for the health care, financial services, commercial and industrial markets. The company filed for bankruptcy on March 12 under Chapter 11 case number 15-10541.

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