Makes Changes to Bid Procedure to Accommodate Belron Requests
Diamond Glass counsel Michael Richman of Foley & Lardner told
the court the company made some changes to the planned bid procedures
"to accommodate concerns raised by one potential bidder, which
is Belron" during a recent hearing in Diamond's bankruptcy
"We agreed to eliminate the option that we would have to conduct
any part of the auction under a sealed bid procedure," Richman
said. "In addition, we made clear that the parties who initially
are entitled to receive bids will not disclose them to parties who
are not initially entitled to receive bids, amplifying the confidentiality
of the process and the fairness of it."
He added, "We also agreed to condition our exercise of discretion
with the word 'reasonable.' And we agreed to provide reasonable
access to management for all potential bidders prior to the bid
Diamond has received inquiries from more than 40 parties through
its investment banker, National City, according to court documents.
We have high hopes that there will be lively and
competitive bidding for the company," Richman said. National
City has contacted 178 potential buyers, has received 46 requests
for confidentiality agreements and has sent executive summaries
to 41 prospective purchasers, according to court documents.
Richman also advised the court that Guggenheim, Diamond's senior
secured lender, has reduced its aggregate credit bid.
"[Guggenheim] has agreed that [it] will not credit-bid the
portion of [its] claim that is covered by the guarantee from Kenneth
Levine," he said. "So, there's approximately $10 million
that [it] will not credit-bid
which then reduces [its] maximum
from roughly $52 to roughly $42 million."
HERE for full text of hearing transcript.
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