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Phoenix Brands to net $30.63 million from court-approved asset sales
By Caroline Salls
Pittsburgh, July 18 – Phoenix Brands LLC received court approval to sell its business units, with the sales expected to net $30.63 million in proceeds, according to a news release.
The company said the net proceeds are 42% more than expected at the outset of its Chapter 11 case.
Phoenix Brands’ Rit Dye Division will be acquired by Nakoma Products, LLC for $16.88 million, with Pensler Capital Corp. serving as the backup bidder; the U.S. laundry assets will be acquired by U.S. Nonwovens Corp. for $10.71 million, with USA Detergents serving as the backup bidder; and the Arctic Power and ABC brands in Canada will be acquired by Lavo for C$5 million.
“The success of the auction underscores the recognition and value of our brands by the marketplace,” Phoenix president and chief executive officer William H. Littlefield said in the release.
The sales are expected to be completed within the next two weeks.
As previously reported, Detergent 2.0, LLC, an entity affiliated with A.P. Deauville, LLC, was the stalking horse bidder for the U.S. laundry assets, with a $5.9 million original bid, and an affiliate of Silver Swan, LLC was the stalking horse bidder for the Rit Dye division, with a $13 million original offer.
Under the court-approved bid procedures, Detergent 2.0 is entitled to a 3˝% breakup fee and an expense reimbursement of 3˝% of the purchase price because it was not the high bidder, and Silver Swan is entitled to a 3˝% expense reimbursement.
Lavo was the stalking horse bidder for the Canadian brands.
Phoenix is being advised by Morrison Cohen LLP and Pachulski Stang Ziehl & Jones LLP as legal counsel. Peter A. Furman of HunterPoint LLC is the company’s chief restructuring officer. Getzler Henrich & Associates LLC is serving as financial advisor.
Stamford, Conn.-based Phoenix Brands sources, manufactures and distributes laundry and fabric care products. The company filed for bankruptcy on May 19 under Chapter 11 case number 16-11242.
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