This was a 24 year old Delaware based provider of materials management services for the pharmaceutical and biotechnology industries. The company filed Ch 11 after sustaining in excess of $3,700,000 in legal fees to defend itself in a legal proceeding which ultimately resulted in an unfavorable judgment from the court in the amount of $6,700,000.
The company identified a buyer for the company, however the secured creditor (judgment holder) was blocking the sale until a commercially reasonable process was undertaken to assure this was the maximum amount the market was willing to pay for the company. The buyer was only willing to allow 45 days for this process to take place or was pulling their offer.
Using an accelerated process, Equity Partners identified 27 interested prospects, conducted site visits with 5 separate groups, and received 2 offers in excess of the original offer.
Within 45 days, Equity Partners conducted an auction that more than doubled the initial offer, with a sale closing to the original buyer.