Grey Mountain Partners Fund II LP was the big winner in Monday’s auction for Dlubak Corp.’s non-real estate assets, outlasting Secaucus, N.J.-based General Glass International (GGI) and Oran Safety Glass (OSG) with a bid of $3.25 million.
As additional terms of the deal, Grey Mountain Partners agreed to extend the contracts for Dlubak Corp.’s union employees for 90 days and to pay an additional $130,000 for all the accrued vacation for union members.
The deal, which is expected to be finalized and approved by the U.S. Bankruptcy Court of the Western District of Pennsylvania on Wednesday, figures to result in a pot of “$400,000 to 500,000” for creditors seeking money owed them by the Blairsville, Pa.-based Dlubak Corp., which filed for Chapter 11 bankruptcy last month. The sale included equipment and inventory, books and records, all intellectual property rights, all products in development and all cash, cash equivalents and accounts receivable.
The auction began in Pittsburgh at 10 a.m., rising in minimal increments of $50,000.
“It was a competitive auction,” says Lawrence Bolla, the Pennsylvania-based attorney representing the Unsecured Creditors Committee. “The results were good for the state, good for the unsecured creditors.”
OSG, which is a Delaware-based subsidiary of OSG Israel, began the day’s bidding with an offer of $2.475 million.
Dlubak Corp. listed more than 200 creditors upon filing for bankruptcy on August 7, including PPG Industries, Quanex, Trulite, Intertek, Allmetal, Bayer, Bottero Inc., Bystronic, C.R. Laurence Co. and Glaston America Inc., among others. Curbell Plastics is easily the largest creditor, with Dlubak Corp. owing it more than $905,000 according to court records. Dlubak Corp.’s estimated assets and estimated debts are both listed between $1 million and $10 million, according to court records.
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