Constar sets procedures for sale of Constar International U.K. assets

By Caroline Salls

Pittsburgh, Dec. 24 - Constar International Holdings LLC requested court approval of the bid procedures for the proposed sale of substantially all of the assets of debtor Constar International U.K. Ltd., according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Constar said it plans to conduct an auction for the U.K. assets on the same timeline as the auction for its U.S. assets to allow bidders to submit offers for the U.S. assets, the U.K. assets, or all of the assets at the same time.

The company said it will continue to reach out to as many potential purchasers as possible and is seeking a suitable stalking horse bidder for the U.K. assets.

If a suitable stalking horse bidder is not found, Constar said it would run a "naked" auction for substantially all of the U.K. assets.

Under the proposed bid procedures, the bid deadline for potential stalking horse bidders is Jan. 16. Constar said it would select a stalking horse bid by Jan. 21 if a suitable bid is received.

If a stalking horse bid is chosen, the company said it would pay that bidder up to 2.5% of the proposed purchase price as a break-up fee and expense reimbursement if it is not ultimately the high bidder for the assets.

The deadline for competing bids will be Jan. 22. Overbids must be in minimum increments of $250,000.

Constar, a Trevose, Pa.-based maker of polyethylene terephthalate food and beverage containers, filed for bankruptcy on Dec. 19. The Chapter 11 case number is 13-13281.

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