Glacial Energy secures approval to sell assets to Platinum Partners

By Caroline Salls

Pittsburgh, June 17 – Glacial Energy Holdings, Inc. received court approval of the sale of its assets to Platinum Partners Value Arbitrage Fund LP, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to an asset purchase agreement filed with the court, Platinum Partners agreed to pay $32.79 million, plus the outstanding amount of accounts receivable at the economic transfer time multiplied by 95%, plus any amount by which cash-backed collateral exceeds $34.04 million, minus any amount by which the collateral is less than $34.04 million, plus the assumption of liabilities.

As previously reported, Vantage Commodities Financial Services I, LLC was the stalking horse bidder. Vantage is also the company’s debtor-in-possession financing lender.

Under the stalking horse agreement, Vantage’s bid was to equal $32.04 million, plus the outstanding amount of accounts receivable on the closing date multiplied by 95%, plus any amount by which cash-backed collateral exceeds $34.04 million, minus any amount by which the collateral is less than $34.04 million, plus the assumption of liabilities.

Glacial Energy is required to reimburse up to $500,000 of Vantage’s sale-related expenses as it was not the high bidder for the assets.

Glacial Energy, a Sandwich, Mass.-based electricity and natural gas company, filed bankruptcy on April 10. The Chapter 11 case number is 14-10833.

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