Global Home Products granted court OK of bid procedures for $33.55 million sale of debtor's assets

By Caroline Salls

Pittsburgh, May 5 - Global Home Products LLC obtained court approval of the bidding procedures for the proposed $33.55 million sale of substantially all of the assets of its The Burnes Group debtors to stalking horse bidder C.R. Gibson, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The assets to be sold include the equity and assets of non-debtor foreign affiliates Intercraft Burnes, S de RL de CV (Mexico) and 690629 BC Ltd.

In addition to the purchase price, C.R. Gibson will pay $3.75 million for new inventory.

C.R. Gibson will pay for $1.25 million of the new inventory before closing.

All bidders will be required to pay a $2 million deposit toward the purchase price.

If C.R. Gibson is not the high bidder, The Burnes Group will pay it a $1 million break-up fee and up to $250,000 for reimbursement of expenses.

Bids other than C.R. Gibson's must be for at least $1.75 million more than the proposed purchase price.

All bids after the initial overbid must be for $100,000 more than the previous bid.

The auction will be held May 22, and the sale hearing is scheduled for May 23.

Global Home Products, through its Anchor Hocking, The Burnes Group and WearEver businesses, is a Westerville, Ohio-based designer, marketer and manufacturer of branded consumer and specialty products to retail and hospitality customers and original equipment manufacturers. The company filed for bankruptcy on April 10. Its Chapter 11 case number is 06-10430.

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