The Ghost of FM
Banned
Officials say Opelika tape manufacturing plant could sell by mid-March
Mitch Sneed / Staff Writer
February 5, 2005
Five bids for the assets of the Quantegy Corporation have been received by the broker handling the possible sale, and officials say there could be a closed deal as soon as the middle of March.
Ken Mann of Equity Partners said that a motion will be filed with the court Monday to accept the highest of the bids as a “stalking horse” or a point where a competitive bid process can begin.
Once that bid is approved by the court, other qualified bidders can up the bid in $100,000 increments in an effort to buy the assets and compensate the creditors in part.
“I would think that after the motion is filed we could have a hearing in 10 to 15 days and then about 20 days after that we could open the bidding,” Mann said. “A sale could close a few days after that.
“What this means is that there is interest and that there will likely be a manufacturing plant operating on that site soon.”
Race Cannon, a Virginia man who is leading a group of local investors’ quest to keep the Opelika-based magnetic recording tape manufacturer operating here, said Friday that he made a “stalking horse” cash bid of $5 million and now awaits response from company officials, the broker for creditors and federal bankruptcy courts.
“We have a cash offer on the table and now wait to see what happens next,” Cannon said. “When you are dealing with a bankruptcy situation like this one, with many parties involved, you find that you have to wait on the process. We’ve found that deadlines don’t mean a lot right now.”
Mann wouldn’t comment on the specifics of any of the bids, but did say that Cannon’s offer was not the highest received. He did say that any qualified bidder could participate in the process when it opens up after hearings.
News of movement, even if slight, is welcomed by Opelika Mayor Gary Fuller. Quantegy’s shutdown on Dec. 31 not only left more than 160 workers without jobs, but the company stiffed the city on a power bill of about $250,000.
“That is great news that there is that kind of interest,” Fuller said. “We need that business operating in Opelika, not just for the jobs which are very important, but for what they could bring to the community. To know that five people think they can make it work, and some with local ties, that’s exciting to hear.
“The thought that they could have something in place that quickly, that’s even better.”
Cannon said the process has been frustrating, with financial information about the company hard to come by from the broker handling the process for the creditors.
“There is information I need as part of my due diligence,” Cannon said. “I need information on production costs, vendors and supplies and at this point that hasn’t been made available to me. Other than the attorneys involved, I’m the only other person who has filed a notice of appearance with the court. I’ve signed a confidentiality agreement, but still I’m not getting any response.
“I’ve approached people at Colonial Bank and First American, but I’m really in a holding pattern until I have more information to approach them with.”
Cannon said time is of the essence. As other companies move to fill the void left by the Quantegy, it becomes more difficult for the market share to be retained. Employees can’t wait indefinitely for a possible restart of production, Cannon said.
“Obviously we are anxious to move forward,” Cannon said. “This company needs to be about local control and local interests. That’s the premise we are working on and the goal of our overall plan. It’s important for the community and we are ready to move forward.”
http://www.oanow.com/servlet/Satell...AN_BasicArticle&c=MGArticle&cid=1031780660149
Cheers!
Mitch Sneed / Staff Writer
February 5, 2005
Five bids for the assets of the Quantegy Corporation have been received by the broker handling the possible sale, and officials say there could be a closed deal as soon as the middle of March.
Ken Mann of Equity Partners said that a motion will be filed with the court Monday to accept the highest of the bids as a “stalking horse” or a point where a competitive bid process can begin.
Once that bid is approved by the court, other qualified bidders can up the bid in $100,000 increments in an effort to buy the assets and compensate the creditors in part.
“I would think that after the motion is filed we could have a hearing in 10 to 15 days and then about 20 days after that we could open the bidding,” Mann said. “A sale could close a few days after that.
“What this means is that there is interest and that there will likely be a manufacturing plant operating on that site soon.”
Race Cannon, a Virginia man who is leading a group of local investors’ quest to keep the Opelika-based magnetic recording tape manufacturer operating here, said Friday that he made a “stalking horse” cash bid of $5 million and now awaits response from company officials, the broker for creditors and federal bankruptcy courts.
“We have a cash offer on the table and now wait to see what happens next,” Cannon said. “When you are dealing with a bankruptcy situation like this one, with many parties involved, you find that you have to wait on the process. We’ve found that deadlines don’t mean a lot right now.”
Mann wouldn’t comment on the specifics of any of the bids, but did say that Cannon’s offer was not the highest received. He did say that any qualified bidder could participate in the process when it opens up after hearings.
News of movement, even if slight, is welcomed by Opelika Mayor Gary Fuller. Quantegy’s shutdown on Dec. 31 not only left more than 160 workers without jobs, but the company stiffed the city on a power bill of about $250,000.
“That is great news that there is that kind of interest,” Fuller said. “We need that business operating in Opelika, not just for the jobs which are very important, but for what they could bring to the community. To know that five people think they can make it work, and some with local ties, that’s exciting to hear.
“The thought that they could have something in place that quickly, that’s even better.”
Cannon said the process has been frustrating, with financial information about the company hard to come by from the broker handling the process for the creditors.
“There is information I need as part of my due diligence,” Cannon said. “I need information on production costs, vendors and supplies and at this point that hasn’t been made available to me. Other than the attorneys involved, I’m the only other person who has filed a notice of appearance with the court. I’ve signed a confidentiality agreement, but still I’m not getting any response.
“I’ve approached people at Colonial Bank and First American, but I’m really in a holding pattern until I have more information to approach them with.”
Cannon said time is of the essence. As other companies move to fill the void left by the Quantegy, it becomes more difficult for the market share to be retained. Employees can’t wait indefinitely for a possible restart of production, Cannon said.
“Obviously we are anxious to move forward,” Cannon said. “This company needs to be about local control and local interests. That’s the premise we are working on and the goal of our overall plan. It’s important for the community and we are ready to move forward.”
http://www.oanow.com/servlet/Satell...AN_BasicArticle&c=MGArticle&cid=1031780660149
Cheers!