Galvex gets court OK of bidding procedures for equity interest and asset sale

By Caroline Salls

Pittsburgh, April 6 - Galvex Holdings Ltd. obtained court approval of the bidding procedures for the proposed sale of its equity interests in its subsidiaries and substantially all of its remaining assets to stalking horse bidder SPCP Group, LLC, according to a Wednesday filing with the U.S. Bankruptcy court for the Southern District of New York.

Under the term sheet with pre-bankruptcy lender SPCP, the lender will buy the equity interests and assets in exchange for satisfaction of the company's $192 million in secured debt.

If SPCP is not the high bidder or a plan of reorganization is confirmed, Galvex will pay it a $1 million break-up fee.

Bids other than SPCP's must be for at least $2 million, and subsequent bids must be made in $1 million increments.

An auction will be held on May 2, and the sale hearing is scheduled for May 4.

Galvex, a New York-based metals company, filed for bankruptcy on Jan. 17. Its Chapter 11 case number is 06-10082.

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