Benada Aluminum Products LLC, which filed for Chapter 11 bankruptcy in August, has motioned for approval of an asset sale of certain of its extrusion equipment and related assets to Tubelite Inc. for a purchase price of $2.9 million. The motion was made in the U.S. District Court for the Middle District of Florida, where the case currently is under review.
Tubelite had emerged as the successful bidder after Benada issued a notification of intent to sell the equipment in August, and 12 potential purchasers expressed interest. Among the others who bid on the company were RL Best, Pries Enterprises, RKM Engineering and Spectra Aluminum, with initial bids ranging between $1 million and $2.5 million. After several rounds of bidding, Tubelite prevailed “as the successful bidder to acquire the property”—coming in just above RL Best’s final bid of $2.8 million.
According to Benada’s motion, company officials “have determined that the sale of the property would be beneficial to the estate … [and] that the purchase price is fair and reasonable.” If the asset sale is approved, creditor Wells Fargo will receive 80 percent of the sale proceeds, while the remaining 20 percent will be used by Benada “to continue to fund its operations.”
If approved, the sale includes the company’s RL Best 2750/3000-Ton Hydraulic Press; an RL Best handling system; a Granco Clark log heating furnace; a Granco Clark hot log cutoff saw; a log saw to press billet transveyor; a die oven; a Belco Reversing End Flow age oven with triple-lane powered conveyors; any and all manuals related to operation, use and maintenance of the extrusion line assets; and any and all unexpired manufacturer’s warranties with respect to the extrusion line assets. According to documentation filed in the case, the machinery was part of Florida Extruders International’s 3000 Ton Press Equipment, which Benada acquired in June 2011.
If the court approves the sale, a deposit of $200,000 will be due from Tubelite, $2.45 million at closing, and $250,000 within 15 business days after delivery of all extrusion line assets to the company’s facility in Reed City, Mich.