Texas Bankruptcy Court Approves Auction of Vitro America Assets
May 9, 2011
The U.S. Bankruptcy Court for the District of North Texas ruled on Friday that it will permit Vitro America LLC and three other indirect Vitro subsidiaries to sell substantially all their assets, including Binswanger Glass, through an auction, according to reports from Bloomberg. The decision was made during a 9 a.m. hearing in front of Judge Barbara Houser. The auction is expected to take place in early June.
Vitro America announced in early April that it had entered into an agreement to sell substantially all of the assets of Vitro America, including Binswanger Glass, to an affiliate of Grey Mountain Partners LLC, a private equity firm based in Boulder, Colo., However, American Glass Enterprises LLC, an affiliate of private equity firm Sun Capital Partners, has placed a bid valued at $2.5 million more than that of Grey Mountain Partners, according to court documents, and has requested that it be named the stalking horse bidder in the case.
The sale process has drawn a number of objections thus far, including two last week from the International Painters and Allied Trades Industry Pension Fund and the unsecured creditors committee, which alleged a relationship between Vitro America parent company Vitro S.A.B. and Grey Mountain Partners, according to court documents.
At press time representatives from Vitro America declined to comment. Stay tuned to glassBYTEs.com™ for more updates as they are made available.
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