Greystone submits $13.5M bid for some assets of Joan Fabrics
Susan M. Andrews -- Furniture Today, June 11, 2007
Wilmington, Del. — Greystone Private Equity has been named the stalking horse bidder for certain assets and real property of Joan Fabrics with a bid of $13.45 million.
Greystone's purchase agreement, recorded in U.S. Bankruptcy Court here, doesn't include Joan's Circa 1801/Doblin operations or its contract fabric business, according to Daniel Bleck, an attorney for Joan Fabrics.
"Their bid is for non-operating assets not necessary for business operations and some parcels of real property. We are still soliciting further bids for the other assets, including the Circa 1801 operations and the contract business," he said.
If Greystone's bid doesn't prevail at the auction, which is scheduled for June 26, the firm would receive a break-up fee of up to 2.5% of the purchase price, or $336,250.
However, Bleck said the bid may be reduced by $2.4 million to about $11 million because Joan may not be able to deliver certain real estate, which would then reduce the amount of the break-up fee as well, if it is applied.
Joan filed for Chapter 11 bankruptcy protection in April. Other parties interested in bidding in the auction have until June 22 to provide a qualified bid.
Greystone Private Equity is part of Greystone & Co., a private financial services and investment group that owns or manages assets of about $10 billion.
