The initial offer on the table to buy bankrupt tech company NanoMech has dropped by $1 million.
According to recently filed court documents, the purchase price of the Springdale-based company is now $8 million, down from $9 million. The topping bid for NanoMech is now $8.25 million, with bidding increments set at $250,000.
Plans are for NanoMech's largest creditor, Michaelson Capital, to act as the so-called stalking-horse bidder in an auction, making an $8 million initial bid for the company's assets along with assumed liabilities. The stalking horse bid sets a low-price bar for the company to establish a minimum purchase price.
The bid deadline for NanoMech is July 17, with an auction set for July 19 if necessary and a hearing to approve the sale scheduled for July 23. Initial plans to hold the auction in June were postponed.
NanoMech filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware in April. With the approval of bankruptcy court, NanoMech is acting as a debtor in possession which allows the business to operate normally in most circumstances as the bankruptcy unfolds.
In court documents, attorney Benjamin Waisbren, NanoMech's chief restructuring officer, said prior to the bankruptcy the company was woefully under-capitalized and was on the verge of collapse. Since then, under court approval, NanoMech has received short-term financing from Michaelson Capital to maintain business operations and pay salaries.
NanoMech claims $7.2 million in assets and owes nearly $19 million to its creditors, according to bankruptcy filings. Property includes $2.9 million in inventory; $3 million in intangibles and intellectual property including patents, trademarks and trade secrets; and nearly $350,000 in cash. Total liabilities stand at $18.9 million with $12.5 million owed to creditors secured by property and $6.4 million in unsecured claims. Typically secured creditors take priority and are paid first in a bankruptcy.
The 12 secured claims include New York-based Michaelson Capital for $8.95 million, Arvest Bank for $1.55 million as well as $1 million to the Arkansas Economic Development Commission. The 166 unsecured creditors include the Waring and Carmen Partridge Foundation of Kingsville, Texas, for $2 million; Daniel Carroll of Bloomfield Hills, Mich., for $1 million; Brewster Jennings of Oyster Bay, N.Y., for $100,000; and Akerman LLP of Orlando, Fla., for nearly $492,000.
Founded in 2002, NanoMech develops nanotechnology for use in machining and manufacturing, lubrication, packaging, biomedical implant coatings and the development of specialty chemicals. Nanotechnology is a branch of technology that focuses on the manipulation of matter at the atomic and molecular level.
Business on 07/10/2019