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Republic Metals seeks approval in bankruptcy court to accept bids for assets

  • Thursday, December 27, 2018
  • Source:ferro-alloys.com

  • Keywords:Republic Metal, bankruptcy court, bid
[Fellow]Republic Metals seeks approval in bankruptcy court to accept bids for assets

[ferro-alloys.com]Republic Metals Refining Corporation is seeking bankruptcy court approval to accept bids for its assets by January 28 and to potentially hold an auction January 31.

The Miami, Florida-based company could sell all its assets by February 8, including its main plant in Opa-locka, Florida, under proposed bidding procedures filed earlier this week with the New York City bankruptcy court.

Republic filed for Chapter 11 federal bankruptcy reorganization on November 2, just after a planned sale to Swiss-based precious metals refining company Valcambi fell through. Republic listed its liabilities at $265 million and its assets at $175 million, mostly consisting of precious metals such as gold and silver.

The company says it owes about $86 million to its raw metal suppliers.

Since the bankruptcy filing, the unsecured creditors committee in the case has received approval from Judge Sean Lane to investigate an approximately $70 million shortfall in Republic's internal metal inventory. The company reported the purportedly missing metal in June.

Under the bidding procedures, prospective asset purchasers would have until 5 pm ET on January 28 to submit offers to the court. Bidders then would be notified the next day as to whether they were considered "qualified bidders."

If more than one qualified bid is submitted, the court would scheduled an auction for 1 pm ET on January 31. Objections to a proposed sale would have to be filed by 5 pm ET on January 28.

Lane then would conduct a sale hearing between February 4 and 8 in his Manhattan offices.

Republic told the court it explored "various strategic options, including sale and recapitalization alternatives" before determining a formal sale process "provides the debtors with the best opportunity to maximize value of their estates."

In the event of a stalking horse bid - a bid intended to test the market for a debtor's assets before an auction - Republic wants the court to approve provision of a breakup fee of 3% of the sale purchase price.

(S&P Global Platts)

  • [Editor:王可]

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