NanoMech Inc. of Springdale, which filed Chapter 11 bankruptcy protection earlier this month, has filed plans to sell the company at auction in June.
In a filing in the U.S. Bankruptcy Court in Delaware, the company names its biggest creditor, Michaelson Capital Partners of New York, the stalking horse bidder in the auction, and says the company has agreed to make an initial bid of $9 million, plus liabilities, for NanoMech’s assets.
“The proposed transaction, if approved, will generate significant value for the Debtor’s estate, and among other things, satisfy a significant portion of the prepetition claims against the Debtor and pave the way for the best outcome to this case,” the filing said.
NanoMech proposes a June 19 auction, with a bid deadline of June 17. A hearing on the sale would take place June 24.
Michaelson Capital sued NanoMech, which describes itself online as “the world leader in Surface Engineering and Material Science Manufacturing of lubricants.” The lawsuit, filed Feb. 4 in New York state court, alleged mismanagement by former CEO Jim Phillips that fueled a shareholder revolt, which preceded Phillips March 1 retirement.
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