CarbonLite Holdings sets bid procedures for substantially all assets

By Sarah Lizee

Olympia, Wash., March 19 – CarbonLite Holdings LLC is seeking court approval of the bid procedures for substantially all of its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company said that so far, 83 parties have signed non-disclosure agreements relating to the assets. Of these, eight have provided nonbinding indications of interest and nine have expressed interest in serving as a stalking horse bidder.

The company is seeking court approval to offer bid protections to one or more stalking horse bidders, including an up to 3% break-up fee and an up to $350,000 expense reimbursement.

Under the proposed bid procedures, stalking horse bids would be due by April 12, the company would have until April 16 to pick a stalking horse bidder, competing bids would be due by April 26, an auction would be held on May 3, a sale hearing would take place on May 7, and the deadline to close the sale would be May 22.

A hearing on the bid procedures is scheduled for April 8.

CarbonLite is a Riverside, Calif.-based producer of food-grade post-consumer recycled polyethylene terephthalate. The company filed bankruptcy on March 8 under Chapter 11 case number 21-10528.

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