Transtar, U.S. Trustee agree to investigation of support agreement

By Caroline Salls

Pittsburgh, Dec. 28 – The U.S. Trustee for Transtar Holding Co.’s Chapter 11 case requested court approval to name Richard Levin as the examiner charged with investigating the fairness of the company’s restructuring support agreement, according to a motion filed on Dec. 28.

The court approved a stipulation between Transtar and the U.S. Trustee regarding the appointment of an examiner on Dec. 22.

Specifically, the examiner will investigate the facts and circumstances underlying and leading to the entry into and proposed approval of the support agreement, whether the Transtar debtors’ entry into the agreement was an arm’s-length transaction free of conflicts, whether the valuation upon which the support agreement is predicated is based on the company’s reasonable business judgment regarding its business plan, projections and alternatives and whether entry into the agreement is in the best interests of the Transtar estate.

The investigation must be completed by Jan. 31 and the examiner must file a report by Feb. 15.

Transtar, a Cleveland-based distributor of automotive aftermarket driveline services, filed bankruptcy on Nov. 20. The Chapter 11 case number is 16-13245.

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