Nellson Nutraceutical granted court approval of procedures for sale of substantially all assets

By Caroline Salls

Pittsburgh, May 24 - Nellson Nutraceutical, Inc. obtained court approval of the bid procedures for the sale of substantially all of its operating assets, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Nellson said it has decided to go forward with the sale process without a stalking horse bidder, but it does reserve the right to select a stalking horse bidder.

Since the company does not plan to seek a stalking horse bidder, the bid procedures do not include a break-up fee or expense reimbursement. Nellson said qualifying bids cannot include a request for a break-up fee or expense reimbursement.

The company said financial adviser A&M Securities, LLC has identified several potential strategic or financial buyers for the assets.

Nellson said it has also already received two non-binding letters of intent from creditor groups in relation to the proposed sale.

Bids are due by 5 p.m. ET on July 13, and bids must include a 10% deposit of the proposed purchase price.

The initial overbid must be for at least $500,000 more than the starting bid at auction, and subsequent bids must be made in increments of $500,000.

The auction will be held July 18, and the sale hearing is scheduled for July 19.

Nellson, an Irwindale, Calif., nutrition bar and powder manufacturer, filed for bankruptcy on Jan. 28, 2006. Its Chapter 11 case number is 06-10072.

© 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.