Auction Date Set for Florida Extruders InternationalMay 31st, 2011 | Category: Industry News
An auction to sell the assets of Florida Extruders International has been scheduled for June 14. The company had filed for Chapter 11 bankruptcy on April 25.
Court documents filed on May 27 stipulate that bid documents must be submitted by June 13 at noon, prior to the auction at 9 a.m. the next day. The court will conduct a hearing on the sale to the stalking horse purchaser or the qualified bidder that makes the prevailing bid at 2:30 on June 15 at the U.S. Bankruptcy Court in Tampa, Fla.
In addition, a final order authorizing Florida Extruders International to use cash collateral and to obtain post-petition financing has been filed in the case. Documents state that as of the petition date, the outstanding principal and accrued, but unpaid interest owed to Wells Fargo under the pre-petition loan is approximately $13,200,000, including a contingent liability under the letter of credit.
Documents further state that the debtor cannot reorganize unless it is able to use cash collateral and obtain post-petition financing for its business operation. The debtor believes the highest value of its assets can be realized through a sale of its business operations as a going concern.
Despite diligent efforts, the company has been unable to obtain financing in the form of unsecured credit thus it has agreed to terms of a revolving line of credit facility with Wells Fargo, according to court documents.
Stay tuned to dwmmag.com for further updates as they become available.