Advertisement
GlassRatner.com

ESP Resources Sale Approved

Advertisement

The U.S. Bankruptcy Court approved ESP Resources’ motion for an order authorizing and approving the sale of assets free and clear of all liens, claims encumbrances and other interests; approving the asset purchase agreement and approving the assumption and assignment of the unexpired executory contracts and leases.

As previously reported, “The Debtors has been attempting to find buyers for the business as a going concern for several months and have engaged Chiron as an investment banker to market the business and conduct an auction. Chiron has continued to market the company and received inquiries from various parties, but no firm offers have been received. The Debtors have received an Asset Purchase Agreement from Encore, its prepetition secured lender, to purchase the business for approximately $2.6 million, including a credit bid of approximately $1.75 million, cash of $400,000 and assumption of various other secured obligations for the balance.”

In addition, “Recently, the Debtors have experienced a series of unexpected employee resignations, which may affect the company’s viability and substantially reduce its value. Further, as a result of the recently filed motion to convert these cases to Chapter 7, Amerisource has indicated that it will no longer factor Debtors accounts receivable. If the company is not sold immediately, the Debtor will lack sufficient funds with which to operate, further defections may occur and the case will likely be converted to a Chapter 7.”

Read more bankruptcy news.