Global Home Products $35.75 million debtor sale approved; Regal Ware wants stay of license assignment

By Caroline Salls

Pittsburgh, Aug. 14 - Global Home Products, LLC obtained court approval of the $35.75 million sale of substantially all of the operating assets of its WearEver debtor to SEB SA and Groupe SEB USA, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Lifetime Brands, Inc. was the stalking horse bidder, with a $21 million bid. Global Home Products will pay Lifetime Brands a $650,000 break-up fee.

According to the motion, WearEver is not profitable under its current capital structure, and Global Home Products will not be able to continue the business as a going concern beyond the near term.

In addition, the court overruled an objection by Regal Ware, Inc. in connection with the assignment of its trademark license.

As a result, Regal Ware filed an emergency motion Saturday asking the court to stay the license assignment portion of the sale order pending appeal.

Global Home Products objected to the stay request on Monday, saying the company would lose their rights to $2 million of the sale proceeds if the license assignment is stayed.

Also, the company said it is unlikely Regal Ware could prevent assumption of the license agreement.

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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