Monday, December 22, 2014

Sun Capital joins Shapes fight

  Sun Capital Partners, a Florida-based private investment firm, has emerged as a third suitor for Shapes/Arch Holdings LLC, one of South Jersey's biggest employers. 
  The Delair-based aluminum and plastics co

Sun Capital joins Shapes fight

  Sun Capital Partners, a Florida-based private investment firm, has emerged as a third suitor for Shapes/Arch Holdings LLC, one of South Jersey's biggest employers. 
  The Delair-based aluminum and plastics company, with 1,000 workers at plants in Pennsauken and Bensalem, filed for Chapter 11 bankruptcy protection in March, citing a slowdown in home-construction and truck orders.
  In its March filing, Shapes asked the court to bless a plan for Versa Capital Management LLC, an affiliate of Ira Lubert's Philadelphia-based Independence Capital Partners, to take control of Shapes, after Versa promised to invest up to $25 million.
  But in early April, H.I.G. Capital of Miami asked the court to let it make a competing offer, with "far more favorable terms" for unsecured creditors than the 2 cents on the dollar it said Versa would pay.
  On Tuesday, Sun Capital Partners Group IV, one of Sun's investment funds, filed its own objection to the Versa deal.
  Sun, which had been in on-and-off talks to buy Shapes since it bought aluminum extruder Indalex three years ago, argued the Shapes-Versa proposal was unfair to debtors, who might collect more money if another buyer outbid Versa. Sun and its lawyer were not immediately available for comment.
  Versa shot back in court, giving itself credit for "saving" Shapes, financing the company when banks backed away, preserving jobs, and keeping the company in business while it reorganizes.
  Yesterday, United States Trustee Kelly Beaudin Stapleton asked for the court to name a bankuptcy trustee. The trustee's office complained Versa has a conflict of interest in managing Shapes' affairs, since Versa's goal of keeping out other bidders in order to control the company, conflicts with the debtors' need to seek higher offers that could result in smaller losses to Shapes' debtors.

Joseph N. DiStefano
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Joseph N. DiStefano
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