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Quantegy sale set for March
Tamiko Lowery
Staff Writer
Saturday, February 26, 2005
Quantegy’s doors closed Dec. 31, 2004, but those doors could open back up, under new ownership, as early as April.
During a 10 a.m. teleconference hearing Friday morning, Judge Dwight H. Williams Jr. approved a motion made by Quantegy’s attorney, Cameron Metcalf, to set an auction of Quantegy on March 24 at the office of Espy, Metcalf & Poston P.C., 326 North Oates St. in Dothan, and the final sale hearing on March 25 at 10 a.m. at the United States Courthouse in Opelika.
With objections from unsecured creditors withdrawn Thursday night, the signed Asset Purchase Agreement between Quantegy and Discount Tape now rests in judicial hands.
“We have an Asset Purchase Agreement in place with Discount Tape to sell all assets of Quantegy, so the company can go forward, but it is only binding. It is up to the judge to approve it at the final sale hearing,” Metcalf said. “A notice of this sale will be available to all interested parties for others to bid. All parties involved have agreed to go forward with the sale of Quantegy. We’ve got a buyer, which is subject to a higher bid. We are following procedure to give an opportunity for a higher bid. If none come forward, there will be no auction, and we will proceed with the sale hearing on March 25. Within a few weeks after the judge approves the sale, it will be closed and final.”
Frank Foster, vice president of Discount Tape, is hoping to hold the line at $5.85 million.
“We’ll know if any other bidders are participating, three days prior to the auction date,” Foster said. “We’ll be waiting for that day to see if anybody is going to stay in the running.”
Since December 2004, Foster and partner Peter Hutt have stayed the course.
“As soon as we heard about Quantegy shutting down and closing doors, we got on the phone,” Foster said. “We’ve been at it ever since. We still think we’re the best strategic investor - we offer the best options for the company to go forward.”
Those closely involved in Quantegy’s bankruptcy case say the reason the case has moved forward so quickly is largely due to Judge Williams.
Quantegy president and chief executive Dick Lindenmuth credits the judge for handling the case with care.
“Judge Williams has shown great interest in this case - he’s interested in the preservation of jobs in Opelika,” Lindenmuth said. “The speed of this case is due to the efforts put forth by the judge. His work has been thoroughly complete.”
Foster agreed. “I think the judge has been sensitive to the timeliness of this case,” he said. “Judge Williams had said all along that time was of the essence - to keep from jeopardizing the business.”
Metcalf said all parties involved have one thing in common - getting the company out of the red.
“This case has roughly been under the protection of the court for six weeks. We’ve covered a lot in those weeks,” he said. “The judge has kept it moving forward. All parties involved have had the best interest of the company in mind - to get the company back up and running as soon as possible. If nobody else makes an offer, we expect a sale approval to Discount Tape on March 25.”
After all the glad-handing of potential investors - trimming the fat to find the meat - to make sure the company continues producing a one-of-a-kind product, Ken Mann of Equity Partners Inc. said the sale of Quantegy is now within reach. “I do see the light at the end of the tunnel,” Mann said. “We should know March 21, three days before the auction, if there are any qualified bidders or not.”
Mann said of the five original bidders, four of them were interested in the company for the right reasons - Discount Tape being one of them.
“Discount Tape has a tremendous advantage,” he said. “They know the heritage of the company. They’re emotionally connected. They know the community. They know the employees. They know the customers. All of this is critical in bidding aggressively and being successful long-term.”
Metcalf said filing bankruptcy, for the most part, is a chance to start over.
“One of the objects of 11 - is to save jobs,” he said. “We want employees to go back to work.”
Quantegy sale set for March
Tamiko Lowery
Staff Writer
Saturday, February 26, 2005
Quantegy’s doors closed Dec. 31, 2004, but those doors could open back up, under new ownership, as early as April.
During a 10 a.m. teleconference hearing Friday morning, Judge Dwight H. Williams Jr. approved a motion made by Quantegy’s attorney, Cameron Metcalf, to set an auction of Quantegy on March 24 at the office of Espy, Metcalf & Poston P.C., 326 North Oates St. in Dothan, and the final sale hearing on March 25 at 10 a.m. at the United States Courthouse in Opelika.
With objections from unsecured creditors withdrawn Thursday night, the signed Asset Purchase Agreement between Quantegy and Discount Tape now rests in judicial hands.
“We have an Asset Purchase Agreement in place with Discount Tape to sell all assets of Quantegy, so the company can go forward, but it is only binding. It is up to the judge to approve it at the final sale hearing,” Metcalf said. “A notice of this sale will be available to all interested parties for others to bid. All parties involved have agreed to go forward with the sale of Quantegy. We’ve got a buyer, which is subject to a higher bid. We are following procedure to give an opportunity for a higher bid. If none come forward, there will be no auction, and we will proceed with the sale hearing on March 25. Within a few weeks after the judge approves the sale, it will be closed and final.”
Frank Foster, vice president of Discount Tape, is hoping to hold the line at $5.85 million.
“We’ll know if any other bidders are participating, three days prior to the auction date,” Foster said. “We’ll be waiting for that day to see if anybody is going to stay in the running.”
Since December 2004, Foster and partner Peter Hutt have stayed the course.
“As soon as we heard about Quantegy shutting down and closing doors, we got on the phone,” Foster said. “We’ve been at it ever since. We still think we’re the best strategic investor - we offer the best options for the company to go forward.”
Those closely involved in Quantegy’s bankruptcy case say the reason the case has moved forward so quickly is largely due to Judge Williams.
Quantegy president and chief executive Dick Lindenmuth credits the judge for handling the case with care.
“Judge Williams has shown great interest in this case - he’s interested in the preservation of jobs in Opelika,” Lindenmuth said. “The speed of this case is due to the efforts put forth by the judge. His work has been thoroughly complete.”
Foster agreed. “I think the judge has been sensitive to the timeliness of this case,” he said. “Judge Williams had said all along that time was of the essence - to keep from jeopardizing the business.”
Metcalf said all parties involved have one thing in common - getting the company out of the red.
“This case has roughly been under the protection of the court for six weeks. We’ve covered a lot in those weeks,” he said. “The judge has kept it moving forward. All parties involved have had the best interest of the company in mind - to get the company back up and running as soon as possible. If nobody else makes an offer, we expect a sale approval to Discount Tape on March 25.”
After all the glad-handing of potential investors - trimming the fat to find the meat - to make sure the company continues producing a one-of-a-kind product, Ken Mann of Equity Partners Inc. said the sale of Quantegy is now within reach. “I do see the light at the end of the tunnel,” Mann said. “We should know March 21, three days before the auction, if there are any qualified bidders or not.”
Mann said of the five original bidders, four of them were interested in the company for the right reasons - Discount Tape being one of them.
“Discount Tape has a tremendous advantage,” he said. “They know the heritage of the company. They’re emotionally connected. They know the community. They know the employees. They know the customers. All of this is critical in bidding aggressively and being successful long-term.”
Metcalf said filing bankruptcy, for the most part, is a chance to start over.
“One of the objects of 11 - is to save jobs,” he said. “We want employees to go back to work.”
