Katy Industries cancels auction, to request OK of stalking horse bid

By Caroline Salls

Pittsburgh, July 13 – Katy Industries, Inc. cancelled its July 14 auction and will ask the U.S. Bankruptcy Court for the District of Delaware to approve a sale of its assets to stalking horse bidder Jansan Acquisition, LLC, a newly created entity co-owned by Highview Capital, LLC and affiliates of Victory Park Capital Advisors, LLC, according to a notice filed with the court.

As previously reported, Jansan submitted a cash and credit bid offer consisting of the assumption of Encina obligations, a $7.5 million credit bid of outstanding debtor-in-possession financing amounts, a credit bid of all amounts due under the company’s second-lien credit agreement and assumption of additional liabilities.

Katy said no other bids were received by the July 12 deadline.

The sale hearing is scheduled for July 17.

Katy, a St. Louis-based manufacturer, importer and distributor of commercial cleaning and consumer storage products, filed bankruptcy on May 14. The Chapter 11 case number is 17-11101.

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