| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for M. Fabrikant & Sons Inc. > News item |
M. Fabrikant sets bid procedures for proposed asset sale
By Caroline Salls
Pittsburgh, April 18 - M. Fabrikant & Sons Inc. requested court approval of the bid procedures for the proposed sale of some of its assets, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
The company has not yet selected a stalking horse bidder. If the company does choose to name a stalking horse bidder, it will do so by April 27.
If a stalking horse bidder is selected, but is not the high bidder at auction, M. Fabrikant will pay it a break-up fee of 2% of the purchase price, plus up to $200,000 for expense reimbursement.
The assets to be sold include third-party accounts receivable, inventory, including intellectual property, its 27% interest in Fabrikant-Tara International LLC and other assets, including furniture and equipment.
The minimum reserve prices set by the company include $10.2 million for its MFS accounts receivable, $2 million for FLI accounts receivable, $21.4 million for MFS inventory, $10 million for FLI inventory, $1.4 million for the Fabrikant-Tara interest, $3 million for other third-party accounts receivable and $500,000 for other assets.
All bids must be accompanied by a deposit of 10% of the proposed purchase price.
Each bid following the initial bid must be in increments of $50,000 for asset categories with an initial bid of less than $10 million and in increments of $100,000 for asset categories with an initial bid of more than $10 million.
The auction will be held May 9, and the sale hearing is scheduled for May 10.
A hearing on the bid procedures is scheduled for April 26.
M. Fabrikant, a New York-based manufacturer and distributor of diamonds and gemstone jewelry, filed for Chapter 11 on Nov. 17, 2006. Its case number is 06-12737.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.