Falcon Products unit gets court OK for bidding procedures for $4 million asset sale

By Caroline Salls

Pittsburgh, Aug. 26 - Falcon Products, Inc. debtor Sellers & Josephson, Inc. obtained approval of the bidding procedures and its choice of Horizon Motors, Inc. as stalking horse bidder for the $4 million sale of all of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Missouri.

If Horizon is not the high bidder, Sellers & Josephson will pay it a $200,000 break-up fee.

A $300,000 deposit must accompany each bid.

The minimum initial overbid is $4.25 million and each bid after that must be for at least $100,000 more.

If Horizon is not the successful bidder, the winning bidder must increase its deposit to at least $600,000 within 24 hours of the bankruptcy court's sale approval order.

A sale hearing is scheduled for Sept. 28.

Falcon, a St. Louis manufacturer of commercial furniture, made a prepackaged filing for Chapter 11 on Jan. 31, 2005. Its case number is 05-41108.

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