Malden Mills receives no competing bids for asset sale; Chrysalis affiliate named successful bidder

By Caroline Salls

Pittsburgh, Feb. 20 - Malden Mills Industries, Inc. said no qualified bids were received by the bid deadline for the sale of substantially all company assets, so the stalking horse bidder is the successful bidder, according to a Friday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The successful bidder is Pipevine MMI, LLC, a newly formed affiliate of Chrysalis Capital Partners, LP, Firetip MMI, LLC and Firetip MMI II, LLC, with a $44 million bid.

Under the purchase agreement, Malden Mills will pay the Chrysalis affiliate $500,000 for expenses incurred in connection with the transaction if it is not consummated by March 5.

Malden Mills said in a previously filed motion that because of its deteriorating financial condition and lack of liquidity, it has decided to sell substantially all of its assets to benefit creditors and other parties of interest.

The sale hearing is scheduled for Wednesday.

Malden Mills, a Lawrence, Mass.-based textile company, filed for bankruptcy on Jan. 10 in the U.S. Bankruptcy Court for the District of Delaware. The case was transferred to the Massachusetts court on Jan. 16. Its Chapter 11 case number is 07-40124.

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