GST AutoLeather committee raises objections to expedited sale process

By Caroline Salls

Pittsburgh, Nov. 3 – GST AutoLeather, Inc.’s official committee of unsecured creditors objected to approval of the bid procedures for the proposed sale of the company’s assets, claiming that the expedited sale process is unnecessary and hurts potential bidders.

According to the objection filed with the U.S. Bankruptcy Court for the District of Delaware, “the pre-petition sale process was not properly targeted, sufficiently robust or designed to prime the market for the expedited post-petition sale proposed by the debtors’ motion.”

For example, the committee said GST has to re-engage with the parties contacted in the pre-bankruptcy sale process in order to provide updated financial information, projections and other information that potential buyers will need to evaluate the debtors’ current value.

In addition, the committee said the pre-bankruptcy process “did not include numerous logical parties that should be contacted as part of the distressed post-petition process and was not refreshed pre-petition as the debtors’ financial performance declined to re-engage with potential buyers that may have interest in a distressed situation.”

To its knowledge, the creditor group said GST never provided any turnaround plan or future business plans for potential pre-bankruptcy buyers to consider forecasts, projections and the company’s efforts to effectively revitalize its operations and return to profitability in the near term.”

GST, a Southfield, Mich.-based automotive leather manufacturer, filed bankruptcy on Oct. 3. The Chapter 11 case number is 17-12100.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.