Genmar gets extended time period for reorganisation
By IBI Magazine
The judge overseeing the Genmar bankruptcy case last week granted the company's motion for extending its time period to reorganise under Chapter 11 bankruptcy laws. Judge Dennis D. O'Brien also ruled that the "Potential Stalking Horse" bidder can have a 20-day exclusivity period to submit his bid for the company. The judge ruled that Genmar could have until January 31, 2010 to submit its reorganisation plans, and that its creditors would have until April 1, 2010 for "the acceptance of such a plan". The committee of unsecured creditors had originally opposed the motion, but the judge noted that no other creditors had objected in his ruling. In a separate order, O'Brien ruled that the "Potential Stalking Horse" bidder, whose name remains confidential, can have a 20-day exclusivity period to complete due diligence and make a bid for the company. No other investors are allowed to bid for the assets. O'Brien also ordered that the Potential Stalking Horse could be reimbursed for due diligence expenses. According to court documents, about 12 potential investors had expressed interested in acquiring all or part of Genmar's assets but Houlihan Lokey Howard & Zukin Capital Inc., the investment bank advising Genmar, narrowed that to one investor. Genmar Chairman Irwin Jacobs told local news sources that he expects to regain control of the assets with about 80 per cent ownership in the company.
(9 November 2009)
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