Gissing North America’s asset sale hearing moved to Nov. 10

By Sarah Lizee

Olympia, Wash., Oct. 25 – Gissing North America LLC’s asset sale hearing has been moved to Nov. 10, according to a notice filed with the U.S. Bankruptcy Court for the Eastern District of Michigan.

Recently, the official committee of unsecured creditors filed an objection to the sale and a reservation of rights, saying it remained unclear whether or not the debtor would be able to proceed with the Oct. 24 sale hearing.

“No stalking horse bidder was selected. No auction has been conducted. And, no qualified bid has been received,” the committee said in its objection.

“If these facts change, the change would not be timely under the bid procedures order.”

Following the objection, the debtor, the committee and other parties entered into a stipulation and agreed to move the sale hearing to Nov. 10. The hearing may be further adjourned to Nov. 14 if needed.

As previously reported, qualified bidders were allowed to bid on either some or all of the assets.

The DIP lenders and the prepetition lenders agreed that if the sale price was at least $24 million, then half of the net sale cash proceeds (after payment of all sale costs) above $24 million, up to a $2 million cap, would be used to pay allowed claims.

The cap would be reduced dollar-for-dollar for any claim cured by any purchasers of the debtors’ assets or otherwise paid.

The Bingham Farms, Mich.-based company is a manufacturer of acoustic systems for the automotive industry. The company filed bankruptcy on Aug. 8 under Chapter 11 case number 22-46160.

© 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.