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Cambridge Sells Assets, Focuses on Bankruptcy Proceedings
Cambridge Industries Inc.'s Board of Directors confirmed yesterday that
it has closed on the sale of substantially all of the company's assets
to Meridian Automotive Systems Inc. of Dearborn, Mich., according to a
newswire report. This action clears the way for Cambridge to transfer
ownership of the purchased assets to Meridian and to finalize all
bankruptcy-related proceedings. Cambridge has been operating under
bankruptcy protection since May 10, when the company voluntarily filed
chapter 11 to facilitate completion of the sale process. It is expected
that most of the bankruptcy proceedings will be completed by the end of
the year. Headquartered in Madison Heights, Mich., Cambridge Industries
was a Tier 1 plastic composites supplier to the automotive, light and
commercial truck, and industrial products markets. Meridian is a
supplier of front- and rear-end modules, signal lighting, console
modules, instrument panels and other automotive interior details.
American Pad & Paper Signs Letter of Intent for Sale of
Williamhouse Division
American Pad & Paper Co. announced yesterday that it has signed a
letter of intent with Saratoga Partners for the sale of the assets of
its Williamhouse division, according to a newswire report. The sale is
subject to a number of conditions, including execution of a definitive
sale agreement and bankruptcy court approval. Dallas-based AP&P,
which invented the legal pad and is a manufacturer and marketer of
paper-based office products in North America, has been pursuing the sale
of its various business assets in order to reduce debt. The sale of
Williamhouse will be the company's second sale of a major business
asset. Saratoga Partners, a New York-based merchant bank founded in
1984, has led buyout and private equity investments in 28 companies with
an aggregate acquisition value exceeding $3.3 billion. AP&P has been
operating under chapter 11 since Jan. 10 and has secured
debtor-in-possession (DIP) financing adequate for its operations while
in chapter 11. Company revenues in 1999 were $573 million.
Court Approves Sale of Stone & Webster Assets to Shaw
Group
Stone & Webster Inc. yesterday announced that the U.S. Bankruptcy
Court for the District of Delaware approved the sale of substantially
all of the company's assets to The Shaw Group Inc. for about $38 million
cash and $105.8 million in shares, according to a newswire report. The
transaction was effectively closed July 14. Shaw, a supplier of
fabricated pipes, also assumed liabilities with a book value of
approximately $450 million and acquired assets with a book value of
approximately $600 million. Shaw, the successful bidder for Stone &
Webster's assets in a sale proceeding under chapter 11, has agreed to
complete substantially all of Stone & Webster's contracts for
current and future projects. Accordingly, Stone & Webster's
previously announced asset sale agreement with Jacobs Engineering Group
Inc. has been terminated. The sale produced a topping bid evaluated at
approximately $147 million over the previous Jacobs agreement. Jacobs
received a breakup fee of $10 million. Stone & Webster, a
Boston-based engineering and construction holding company, filed chapter
11 in June.
Second Major Bankruptcy in Week Hits Japan
Japan suffered its second major bankruptcy in a week today when Seiyo
Corp., a real estate unit of Seibu Department Store Ltd., filed for
special liquidation with debts of 517.5 billion yen (US$4.79 billion),
according to a newswire report. Tokyo-based Seiyo follows in the steps
of Japanese department store operator Sogo Co., which last week sought
bankruptcy court protection with debts of 1.87 trillion yenJapan's
second biggest corporate bankruptcy. A spokesman for Seibu Department
Store, the core firm of the Saison group, said the Saison group and
creditor banks had entered the final stages of talks on spreading the
financial burden of liquidating Seiyo. Of the 30 companies in the Seiyo
Corp group, 23 will be liquidated. Saison and Dai-Ichi Kangyo Bank Ltd.,
Saison's main creditor, agreed the Saison Group would repay between 80
to 90 billion yen to banks over two years. Saison group firms include
consumer financing company Credit Saison Co., supermarket chain operator
Seiyu Ltd., restaurant chain Seiyo Food Systems Inc. and shopping center
operator Parco Co.
Global Tissue LLC Files Chapter 11 Petition in Delaware
Paper products manufacturer Global Tissue LLC filed for chapter 11
bankruptcy in the U.S. Bankruptcy Court in Wilmington, Del., yesterday.
The company reported total assets of $79,157,000 and total liabilities
of $93,095,000, according to the court documents. Montreal-based Kruger
Inc. (X.KRG) owns 72% of the bankrupt company.
Courtesy
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