Acme Creditors Oppose 3-Branch Sale, Say Allied Assets Should Be Separate

by George Waldon  on Monday, Jun. 9, 2014 12:00 am  

Those total debts of about $11.4 million are counterbalanced by claimed assets of $12.2 million.

The biggest asset is a $12 million valuation of Acme’s ownership of Allied Bank, a $138 million-asset lender controlled by the family of Lex Golden.

The bank had total equity capital of $10.5 million as of March 31.

Chambers Bank, Acme’s largest secured creditor, is owed $4.5 million on two loans dating to September and December 2010, according to Acme’s up-dated bankruptcy filing.

In its objection to the proposed sale, Chambers describes its claim as more than $4.5 million, secured by Acme’s ownership of all of the Allied Bank common capital stock.

Hildene Asset Management, with its Hildene Opportunities Master Fund Ltd., is the second-largest secured creditor, at about $3.3 million. The Hildene debt is tied to principal and interest owed on trust preferred securities issued for the benefit of Acme Holding on March 26, 2003.

Hildene took issue with the undisclosed identity of the branch buyer as part of an undisclosed plan of reorganization by Acme. Hildene questioned whether the purchase price was reached in arms-length fashion and reflected fair value. Its filing with the bankruptcy court noted the absence of supporting information about the proposed transaction:

“Rather than approve a rushed sale shrouded in secrecy, Hildene and HOMF request the court instead deny the motion and direct that the debtor be required to institute a full and fair bidding process to ensure that the maximum value is secured for the assets …

“The proposed sale that Acme is seeking approval for in the motion may represent the best deal possible, or it may not.

“But the only way to ensure that this occurs is if the court allows for an open and fair auction process.”

The opposition by Chambers Bank laid out a more fundamental argument: The court shouldn’t permit the sale became Acme Holding doesn’t own the Allied Bank branches.

Acme Holding owns the controlling shares in Allied Bank, but the bank isn’t a party to Acme’s bankruptcy.



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