Kirk sets bid procedures for proposed $3.2 million Illinois property sale

By Jennifer Lanning Drey

Portland, Ore., June 15 - Kirk Corp. requested court approval of the bidding procedures related to the proposed $3.2 million sale of its 164-acre property in Kane Co., Ill., according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The stalking horse bidder is Joseph Valente, principal of Component Plastics.

Kirk will pay Valente a 2.5% breakup fee if it selects another bidder.

The deadline for qualified bids has not yet been set.

Competing bids must be for at least $3.2 million plus the breakup fee.

At auction, bids must be made in increments of at least $160,000 more than the previous bid.

According to the filing, the stalking horse bid acknowledges an easement agreement previously negotiated with Commonwealth Edison related to the property.

A hearing is scheduled for June 17.

Kirk, an employee-owned homebuilder based in Streamwood, Ill., filed for bankruptcy on May 12. Its Chapter 11 case number is 0917236.

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