Republic Metals Refining Corporation, a Florida-based provider of precious metals refining services, has asked a bankruptcy judge to approve the sale of the company "Free and Clear of All Liens, Claims, Rights, Interests and Encumbrances" pursuant to 11 U.S.C. §363 of the U.S. Bankruptcy Code.
To assist in the marketing and Sale, a Bankruptcy Court in New York has approved the engagement of, SSG Capital Advisors, LLC (SSG), an experienced investment banking firm specializing in the sale of financially distressed businesses. SSG marketed the Debtors' assets for over two months pre-Petition, and has been actively marketing the Assets since the commencement of these Chapter 11 Cases. According to court records SSG contacted numerous potential buyers, and identified multiple parties who may be ready, willing and able to complete a purchase on a timely basis. However there is no proposed "stalking horse" bidder at this time.
The plan has the backing of the company's senior lenders, including Bank Hapoalim B.M. (Hapoalim), Mitsubishi International Corporation (Mitsubishi), Coöperatieve Rabobank U.A., New York Branch (Rabobank), Brown Brothers Harriman & Co. (BBH), ICBC Standard Bank Plc (ICBCS), Techemet Metal Trading LLC, Woodforest National Bank, Bank Leumi USA. However several objections to the proposed sale have been filed, including one by States Recycling, Inc., and another from famed jewelry retailer Tiffany and Company,
To qualify as a qualified bidder, interested parties should submit their bids by January 28, 2019, along with good-faith deposit in the amount of 10% of the bid price. The initial minimum overbid should be at least $0.1 million more than the initial purchase price. The debtor has scheduled an auction on January 31, 2019. At the auction, the subsequent bids would be in increments of $0.1 million. The stalking horse bidder would be entitled to a break-up fee of 3% and expense reimbursement in case of termination of the asset purchase agreement. The sale hearing is scheduled for February 4-8, 2019.
Republic Metals Corporation, and Republic Carbon Company, LLC each filed voluntary petitions for relief under chapter 11 of Title 11 of the United States Code in early November. On November 21, 2018, Republic High Tech Metals, LLC, RMC Diamonds, LLC, J&L Republic, LLC, R&R Metals, LLC, Republic Metals Trading (Shanghai) Co., Ltd., and Republic Trans Mexico Metals, S.R.L. filed voluntary petitions for relief under the Bankruptcy Code.