Venture, Deluxe to be sold to Venture's bank lenders

By Caroline Salls

Pittsburgh, April 25 - Venture Holdings Co. LLC and Deluxe Pattern Corp. are to be sold to a new company formed by Venture's pre-bankruptcy bank lenders, according to an 8-K filed with the Securities and Exchange Commission.

The purchase price to be paid by the new company - called New Venture Holdings, LLC - will include the cash needed to pay Venture's post-bankruptcy credit agreements, the cash needed to pay 50% of Venture and the creditors committee's professional fees, a $500,000 credit bid of the pre-bankruptcy obligations, cash payments to pre-bankruptcy senior lenders who did not participate in the credit bid, liabilities to be paid at closing toward the Key Employee Retention Program and cure costs for the companies' contracts to be assumed by the buyers, according to the filing.

The sale was approved by the U.S. Bankruptcy Court for the Eastern District of Michigan on April 19.

All of the equity interests of Venture and Deluxe Pattern are held by Larry J. Winget.

Excluded from the sale are the equity interests in some of Venture's foreign subsidiaries, some accounts receivable and some real estate containing closed facilities.

The companies decided to sell their assets after the bankruptcy court denied confirmation of Winget's plan of reorganization.

Venture Holdings, a Sterling Heights, Mich., auto parts maker, filed for bankruptcy on March 28, 2003. Its Chapter 11 case number is 03-48939.

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