Reichhold Inc. Announces Bidding Procedure for Sale of US Assets
Reichhold Industries, Inc. announced that its US subsidiary, Reichhold, Inc. received approval from the United States Bankruptcy Court for the District of Delaware of certain bidding procedures in connection with the sale of substantially all of its US assets. The approved bidding procedures contemplate a Court-supervised auction process, which is designed to achieve the highest and best offer for Reichhold, Inc.’s assets.
In September 2014, Reichhold, Inc. announced that it had filed for voluntary protection under Chapter 11 of the Bankruptcy Code and that it secured financing from its bondholders to fund continuing operations pending a sale of its assets. To that end, on November 12, 2014, Reichhold, Inc. entered into an Asset Purchase Agreement with its bondholders as the “stalking horse” bidder, subject to higher and better offers and Court approval. Reichhold affiliates located outside of the United States are not included in the sale.
Reichhold, Inc. , in conjunction with CDG Group, LLC, its court-approved financial advisor and investment banker, is soliciting bids from interested parties for all or a subset of its assets. Such parties could include strategic and financial bidders. The bid deadline established by the Bankruptcy Court is January 6, 2015. If Reichhold, Inc. receives one or more qualified bids, it will conduct an auction for the sale of the assets on January 8, 2015 at 10:00 a.m.
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