Glacial Energy eyes subsidiary asset sale to finance settlement fund

By Kali Hays

New York, Dec. 1 – Glacial Energy Holdings, Inc. is seeking authorization to sell the assets of its subsidiary, Ziphany, LLC, according to a Friday motion with the U.S. Bankruptcy Court for the District of Delaware.

Glacial does not yet have a stalking horse bidder, but if the marketing of Ziphany fails to generate a qualified bidder, the assets will be sold to Vantage Commodities Financial Services I, LLC for $300,000 and the release of its liens against Glacial.

Vantage is the company’s debtor-in-possession lender and was the backup bidder in the June sale of substantially all of Glacial’s assets to Platinum Partners Value Arbitrage Fund LP for $32.79 million.

Under an approved global settlement with Vantage, the $300,000 will be paid into a settlement fund for the payment of carveout fees and expenses incurred by Glacial’s committee of unsecured creditors and for the settlement of “non-ordinary” administrative expense claims.

If a qualified bid is received in excess of $500,000, that amount will be paid into the settlement fund, and 50% of any amount over $1 million will also be paid into the fund, according to the motion.

Qualified bids are due by Dec. 12 and will only be accepted in cash by those bidders able to complete the sale transaction by Dec. 31.

Bidders will not be allowed to include any contingencies related to financing, internal approval, due diligence or payment of any sale-related fees.

If one or more qualified bids are received, a telephone auction will be held Dec. 16 and a sale hearing is scheduled for Dec. 19.

Glacial Energy, a Sandwich, Mass.-based electricity and natural gas company, filed bankruptcy on April 10, 2014. The Chapter 11 case number is 14-10833.

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