Summit Global sets bid procedures for sale of substantially all assets

By Rebecca Melvin

New York, Jan. 31 - Summit Global Logistics Inc. requested court approval of bid procedures for the proposed sale of substantially all of its assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

TriDec Acquisition Co. Inc. is the stalking horse bidder, having agreed to pay $56.5 million plus liabilities for the company and its TUG USA and FMI International operating subsidiaries.

TriDec is a newly formed entity that is owned by some members of Summit Global management.

According to the motion, the proposed sale is the result of months of discussion and negotiations led by Summit's investment bank Gordian Group LLC. During those months, it was determined that outside buyers would not likely be willing to pay an amount equal to the amounts owing to senior secured creditors.

Summit's bankruptcy filing this week constituted an event of default under Summit's senior secured credit facility and convertible notes, causing an automatic acceleration of $51 million in senior secured debt and giving convertible noteholders the right to force the company to redeem $95 million of notes.

If TriDec is not the winning bidder, there is an expense reimbursement of up to $1.8 million.

Initial overbids must be for at least $250,000 more than the stalking horse bid.

Subsequent bids at auction must be made in increments of at least $100,000.

A hearing is requested in early March.

Based in Kenilworth, N.J., Summit provides supply chain management services in the United States, Asia, Russia, the Commonwealth of Independent States, the Eastern Mediterranean, the Middle East and India. Its Chapter 11 case number is 08-11566.

© 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.