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Katy Industries Bankruptcy APA Amended

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Katy Industries filed with the U.S. Bankruptcy Court an amended and restated asset purchase agreement (APA).

The notice states, “The Debtors hereby file an Amended and Restated Asset Purchase Agreement pursuant to which the Debtors propose to sell the Purchased Assets to the Stalking Horse Purchaser, Jansan Acquisition. The Purchased Assets include all assets used in connection with the operation of the Business and owned by Fort Wayne Plastics, not included in the definition of Excluded Assets (such assets, the ‘Fort Wayne Plastics Assets’).”

In addition, “The Sale Hearing is scheduled by the Court on July 17, 2017….The aggregate purchase price for the Purchased Assets shall be an amount equal to (i) the assumption of the Encina Obligations, which amount shall be reduced by any prepayments; plus (ii) a credit bid in the amount outstanding under the $7.5 million secured debtor-in-possession credit facility at the time of the Closing; plus (iii) a credit bid in the amount of the Second Lien Debt; plus (iv) the Assumed Liabilities; plus (v) the Wind Down Reserve; plus (vi) $975,000 less any applicable credits set forth in that certain engagement letter agreement by and between Katy Industries and Lincoln Partners Advisors made and entered into as of March 16, 2017 as amended by the Order entered by the Bankruptcy Court on June 19, 2017 approving the retention of Lincoln as investment banker for the Company; plus (vii) in the event a Qualified Bidder other than the Purchaser is the Successful Bidder….Qualified Bidder shall close no later than July 21, 2017 or agree to pay an amount equal to the net cost incurred by the Sellers after July 21, 2017 (the ‘Optional Closing Period Extension Costs’) until the closing of such Qualified Bid, provided that in no event shall the closing occur after July 31, 2017 (the ‘Optional Closing Period Extension’). The Auction of Sellers’ assets shall occur within sixty-one (61) calendar days of the filing of the Petition Date.”

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