to Bid for Diamond Glass Slated for June 5
The U.S. Bankruptcy Court for the District of Delaware approved
Diamond Glass' bid procedures for sale of the company's assets and
set an auction date of June 5. The order granting approval was issued
yesterday, April 24, during a hearing in the bankruptcy case. Diamond
filed for reorganization under Chapter 11 on April 1.
"The Debtors have articulated good and sufficient reasons
for this Court to grant the relief requested in the Motion regarding
the Bid Procedures and the sale of the Assets," writes U.S.
Bankruptcy judge Christopher S. Sontchi.
The court also capped Diamond's expenses related to the bid process
In addition, the order authorizes Guggenheim, Diamond's senior
secured lender, to arrange for any qualified bidder "certain
that would enable such qualified
bidder, if it so desires, to borrow up to $25 million
only if such bidder is determined to be the successful bidder after
the auction." (CLICK
HERE for related story.)
The auction will occur on June 5 at 9 a.m. at the offices of Young
Conaway Stargatt & Taylor LLP in Wilmington, Del.
In the order, the court authorizes Diamond "the right, as
they may reasonably determine to be in the best interests of their
estates and in consultation with counsel to the Creditors' committee"
- Determine which bidders the company deems to be qualified;
- Determine which bids are qualified;
- Determine which qualified bid is the highest and best proposal,
along with the next highest and best; and
- Reject any bid that is inadequate, insufficient, doesn't conform
to the requirements of the order or Bankruptcy Code or is against
Diamond's best interests.
Once the successful bid and bidder are chosen, the court will review
the bid, and, once approved, Diamond will sell all assets to that
bidder, according to court documents. The hearing to review the
sale will be held on June 6-the day after the auction.
In notifying bidders, Diamond is required to mail a notice all
parties that have interest in the assets, those with contracts with
Diamond, government authorities that could be affected by the sale,
all creditors, the Office of the U.S. Trustee and "all entities
that have, within the past 12 months, expressed to the Debtors an
interest in purchasing the Assets." Diamond also is required
to publish a similar notice in a national edition of the Wall
Street Journal, The New York Times or USA Today, within
the next five days.
HERE for full text of order.
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