Miami buyout firm H.I.G. Capital has muscled aside rival Versa Capital Management Inc. of Philadelphia in bankruptcy court maneuvers to win control of Shapes/Arch Holdings LLC, one of South Jersey’s largest employers.
Shapes' 1,000 workers in Pennsauken and Bensalem make aluminum and plastic parts for truck-makers and home-builders. Sales dropped last year Shapes said in its March Chapter 11 filing.
HIG agreed to lend up to $30 million to Shapes, and to hold an auction that will let other bidders make sweeter offers, under an order signed Tuesday by federal bankruptcy court judge Gloria M. Burns in Camden. If that happens, HIG collects a $1 million break-up fee. At least one other potential owner, Sun Capital Partners of Boca Raton, has also expressed interest.
Versa had offered to lend up to $25 million, under a March proposal supported by Shapes chief executive Steve Grabell and other company officials and owners.
Creditors objected to the Versa plan and backed HIG’s offer because Versa proposed spending just $500,000 to pay an estimated $30 million plus in Shapes debts to suppliers, contractors and other creditors, while HIG agreed to set aside $5 million, said lawyer Alan Halperin of Halperin Battaglia Raicht LLP, New York, which is representing Shapes creditors.
UPDATE 5/12: Versa later upped its creditor offer to $2 million, says spokeswoman Kristy Lash.
Shapes' 1,000 workers in Pennsauken and Bensalem make aluminum and plastic parts for truck-makers and home-builders. Sales dropped last year Shapes said in its March Chapter 11 filing.
HIG agreed to lend up to $30 million to Shapes, and to hold an auction that will let other bidders make sweeter offers, under an order signed Tuesday by federal bankruptcy court judge Gloria M. Burns in Camden. If that happens, HIG collects a $1 million break-up fee. At least one other potential owner, Sun Capital Partners of Boca Raton, has also expressed interest.
Versa had offered to lend up to $25 million, under a March proposal supported by Shapes chief executive Steve Grabell and other company officials and owners.
Creditors objected to the Versa plan and backed HIG’s offer because Versa proposed spending just $500,000 to pay an estimated $30 million plus in Shapes debts to suppliers, contractors and other creditors, while HIG agreed to set aside $5 million, said lawyer Alan Halperin of Halperin Battaglia Raicht LLP, New York, which is representing Shapes creditors.
UPDATE 5/12: Versa later upped its creditor offer to $2 million, says spokeswoman Kristy Lash.
About Joseph N. DiStefano
- Bloomberg News
- New York Times Dealbook
- Washington Post Economy Watch
- U.S. propaganda
- Dealbreaker
- Edgar SEC Filings
- Emma Bond Filings
- ACG Philadelphia Deals and Dealmakers
- Seeking Alpha CEO call transcripts
- FCC Documents on Comcast-NBC Universal merger
- Jones Philadelphia Skyline Report
- Grubb Business Real Estate
- Studley Business Real Estate
- Plan Philly
- Penn Praxis
- Technically Philly
- Llenrock real estate blog
- Pennsylvania state budget
- New Jersey state budget
- Philadelphia city budgets
- Delaware 2010 budget
- U.S. budget
- Pennsylvania State Employees Retirement System
Blog Roll
- February
- January
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Archives
Get it now
Philly.com Promotions
- News | Sports | Business | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | Jobs
Site Services:
Classifieds:
Partners:
Local Services:
