Leiner seeks court approval to choose stalking horse bidder for asset sale

By Caroline Salls

Pittsburgh, May 5 - Leiner Health Products Inc. requested court approval to select a stalking horse bidder for the proposed sale of substantially all of its assts by the June 9 auction date, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company received court approval of the bid procedures for the proposed sale on April 8. Those bid procedures do not include a stalking horse bidder or a provision for payment of a break-up fee.

Leiner said the selling debtors have been negotiating with several potential buyers, and the company now believes that designating a stalking horse bidder could maximize value for the debtors' estates.

The company has requested a May 14 hearing on approval to proceed with a stalking horse bid.

Leiner is a Carson, Calif.-based manufacturer of store-brand vitamins, minerals and nutritional supplements. The company filed for bankruptcy on March 10. Its Chapter 11 case number is 08-10446.

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