Werner sets bid procedures for asset sale; no stalking horse bid selected yet

By Caroline Salls

Pittsburgh, Feb. 16 - Werner Holding Co. (DE) Inc. requested court approval for the proposed sale of substantially all of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Werner has not selected a stalking horse bidder for the sale, but the company has received a $255.75 million offer from Black Diamond Capital Management and a $262 million offer from an investor group of its second-lien lenders.

The company said it must select a stalking horse bidder by Feb. 27.

Under the bidding procedures, if the stalking horse bidder is not the high bidder, Werner will pay it a break-up fee of 2% of the purchase price, as well as up to $1 million in expense reimbursement.

The initial overbid must be for at least the stalking horse bid purchase price, plus $1 million, plus the amount of the break-up fee and expense reimbursement.

Bids at auction must be made in increments of at least $1 million.

The auction will be held May 1, and the sale hearing is scheduled for May 4.

A hearing on the bid procedures is scheduled for March 7.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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