Bankruptcy Court Approves Sale of Vitro America
June 14, 2011
The U.S. Bankruptcy Court for the Northern District of Texas Dallas
Division approved the sale of Vitro America's assets, including
Binswanger Glass, to American Glass Enterprises LLC, an affiliate
of private equity firm Sun Capital, through an order
issued yesterday. The
auction of Vitro America's assets took place on June 1.
"After a robust bidding process, the Purchaser's bid was selected
as the highest and best offer for the Purchased Assets," reads
the court's official order approving the sale. The court found adequate
notice of the sale was provided, sale conditions are fair and reasonable,
and the highest offer is in the best interest of the debtor, according
to court documents.
The approval comes after several objections
filed in the days following the auction, including objections from
industry suppliers Pittsburgh Glass Works (PGW) and GTS Services
regarding cure amounts as reported by Sun.
In response to such objections, Vitro America writes, "Most
objections concern the alleged cure amounts for contracts to be
assumed and assigned to Sun and additional information regarding
adequate assurance that Sun can perform obligations under the assigned
contracts. The Debtors have resolved many of these cure objections.
For outstanding objections, the Debtors will retain a reserve in
the amount of the alleged outstanding cure amounts pending resolution
of the objection."
In response to a recent objection issued by former parent company
Vitro SAB, court documents note that the purchased assets do not
include the right to "the name, word, or mark 'VITRO' or 'VITRO
or any variation thereof
unless and until
the purchaser obtains a valid license to do so from Vitro SAB."
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