Tuscany: Stalking horse wins auction; piecemeal offer prompts talks

By Caroline Salls

Pittsburgh, May 12 - Tuscany International Holdings (U.S.A.) Ltd. said the stalking horse bidder won the May 9 auction for its assets, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Tuscany said in March that it was negotiating a stalking horse asset purchase agreement with a newly formed entity that will be controlled by some of its senior secured pre-bankruptcy and/or debtor-in-possession lenders as buyer and administrative agent Credit Suisse AG, Cayman Islands Branch.

Under that agreement, the new company would purchase all or substantially all of Tuscany's assets, including its ownership interests in some of its subsidiaries.

The new company will have the option, at its sole discretion, of paying all or a portion of the purchase price by way of a credit bid of the senior secured obligations owed by the company.

The company said it did receive one qualified piecemeal bid for some of the assets, and it is still negotiating with the stalking horse bidder to see if it will exclude the assets covered by the piecemeal bid from its purchase agreement.

According to the notice, Tuscany is also negotiating with the piecemeal bidder to see if it will amend its offer in a manner acceptable to the company, its administrative agent and required lenders.

The identity of the piecemeal bidder and the winning bid amount were not disclosed in the notice.

Tuscany, a Calgary, Alta.-based oilfield services provider, filed bankruptcy on Feb. 2. The Chapter 11 case number is 14-10193.

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