Katy Industries sale of assets to Jansan approved by court

New York, July 18 – Katy Industries, Inc. received approval for the sale of all its assets to stalking horse bidder Jansan Acquisition, LLC from the U.S. Bankruptcy Court for the District of Delaware in an order filed Tuesday.

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 and as a result the company canceled an auction planned for July 14.

A hearing on the sale was held on 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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