PTC Alliance receives court OK of procedures for $85 million sale

By Caroline Salls

Pittsburgh, Nov. 6 - PTC Alliance Corp. received court approval of the bidding procedures for the proposed sale of substantially all of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company has entered into a stalking horse agreement under which funds managed by Black Diamond Capital Management LLC, which served as the company's pre-bankruptcy term lenders, would purchase substantially all of PTC Alliance's assets under an $85 million credit bid.

The Black Diamond funds submitted the stalking horse bid under the name BD PTC Acquisition, Inc.

If BD PTC is not the high bidder, PTC Alliance will pay it a break-up fee of 3% of the purchase price.

Black Diamond has agreed to continue to operate PTC Alliance's business as a going concern.

Competing bids are due by 5 p.m. ET on Dec. 11 and must include a $5 million deposit.

Bids at auction must be made in minimum increments of $250,000.

The auction will be held on Dec. 16, and the sale hearing is scheduled for Dec. 17.

PTC Alliance is a Wexford, Pa., manufacturer and marketer of welded and cold drawn mechanical steel tubing, fabricated parts and precision components and chrome-plated steel bars. The company filed for bankruptcy on Oct. 1, and its Chapter 11 case number is 09-13395.

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