Strike cancels auction, names stalking horse AIP winning bidder

By Sarah Lizee

Olympia, Wash., Jan. 26 – Strike, LLC canceled an auction scheduled for Wednesday and named stalking horse Strike Acquisition LLC, an affiliate of American Industrial Partners (AIP), the winning bidder for the company’s assets, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said it did not receive any other qualified bids by the deadline.

As previously reported, the purchase price under the stalking horse agreement includes a $115 million credit bid of debt under the company’s prepetition senior loan facility and proposed $29 million in debtor-in-possession financing from AIP, the assumption of certain liabilities, and cash, which is anticipated to be enough to effectuate an orderly wind-down of the debtors’ estates under a Chapter 11 plan of liquidation.

The stalking horse agreement provided for a $1.5 million expense reimbursement.

As previously reported, the official committee of unsecured creditors had filed a limited objection to the bid procedures, saying they unfairly benefit AIP and chill the bidding process. Unsecured creditor Eagle Capital Corp. had also objected to the bid procedures, calling them detrimental to the creditors.”

A sale hearing is scheduled for Thursday.

Strike is based in The Woodlands, Tex., and is a full-service pipeline, facilities and energy infrastructure solutions provider. The company filed Chapter 11 bankruptcy on Dec. 6 under case number 21-90054.

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