By Phil Wahba
NEW YORK, April 9 (Reuters) - Patriarch Partners LLC has asked a federal bankruptcy court to reopen and supervise the auction for the assets of bankrupt U.S. camera maker Polaroid Corp, a spokesman for the private equity firm said Thursday.
Patriarch submitted a higher $75.5 million bid for the company late Wednesday after learning that a rival $72.6 million joint bid by private investors Hilco Consumer Capital and Gordon Brothers Brands had been declared higher than Patriarch's earlier bid, the spokesman said.
If U.S. Bankruptcy Judge Gregory Kishel agrees to reopen the auction, it would be the third attempt to select a new owner for the company's assets. Kishel had agreed to reopen the auction last week after creditor objections, but gave the companies a deadline of late Tuesday to submit bids.
The judge is expected to rule late Thursday afternoon at a hearing in St. Paul, Minnesota.
The latest bid by Patriarch Partners, which had won the first auction for Polaroid last week with a $59.1 million bid, included an extra $8.1 million in cash, the Patriarch spokesman said. Patriarch says it intends to rebuild the company, keep employees and preserve its headquarters in Minnesota.
Polaroid deemed the latest bid by Hilco and Gordon Brothers, valued at $72.6 million, to be 'the highest and the best bid,' according to documents filed Wednesday in U.S. Bankruptcy Court in Minnesota. Hilco and Gordon Brothers, which specialize in brand licensing, have said they intend to keep the Polaroid brand alive.
Hilco and Gordon Brothers' bid in the initial auction was worth $61.5 million, but included less cash and offered a higher stake in the new Polaroid that will emerge from the sale process.
The improved Hilco and Gordon Brothers bid includes $40 million cash, a 25 percent stake in the new company and Polaroid's art collection, for a total bid valued at $72.6 million, Polaroid said in its filing.
The 'stalking horse bidder,' Luxembourg-based Genii Capital SA, which had started the bidding for the company with a $42 million offer on April 1, will get a $1.2 million break-up fee, according to the filing.
The case is In re: Polaroid Corp et al., U.S. Bankruptcy Court for the District of Minnesota, No. 08-46617.
(Reporting by Phil Wahba, editing by Maureen Bavdek and Matthew Lewis) Keywords: POLAROID/AUCTION (phil.wahba@thomsonreuters.com; + 1 646 223 6128; Reuters Messaging: phil.wahba.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, April 9 (Reuters) - Patriarch Partners LLC has asked a federal bankruptcy court to reopen and supervise the auction for the assets of bankrupt U.S. camera maker Polaroid Corp, a spokesman for the private equity firm said Thursday.
Patriarch submitted a higher $75.5 million bid for the company late Wednesday after learning that a rival $72.6 million joint bid by private investors Hilco Consumer Capital and Gordon Brothers Brands had been declared higher than Patriarch's earlier bid, the spokesman said.
If U.S. Bankruptcy Judge Gregory Kishel agrees to reopen the auction, it would be the third attempt to select a new owner for the company's assets. Kishel had agreed to reopen the auction last week after creditor objections, but gave the companies a deadline of late Tuesday to submit bids.
The judge is expected to rule late Thursday afternoon at a hearing in St. Paul, Minnesota.
The latest bid by Patriarch Partners, which had won the first auction for Polaroid last week with a $59.1 million bid, included an extra $8.1 million in cash, the Patriarch spokesman said. Patriarch says it intends to rebuild the company, keep employees and preserve its headquarters in Minnesota.
Polaroid deemed the latest bid by Hilco and Gordon Brothers, valued at $72.6 million, to be 'the highest and the best bid,' according to documents filed Wednesday in U.S. Bankruptcy Court in Minnesota. Hilco and Gordon Brothers, which specialize in brand licensing, have said they intend to keep the Polaroid brand alive.
Hilco and Gordon Brothers' bid in the initial auction was worth $61.5 million, but included less cash and offered a higher stake in the new Polaroid that will emerge from the sale process.
The improved Hilco and Gordon Brothers bid includes $40 million cash, a 25 percent stake in the new company and Polaroid's art collection, for a total bid valued at $72.6 million, Polaroid said in its filing.
The 'stalking horse bidder,' Luxembourg-based Genii Capital SA, which had started the bidding for the company with a $42 million offer on April 1, will get a $1.2 million break-up fee, according to the filing.
The case is In re: Polaroid Corp et al., U.S. Bankruptcy Court for the District of Minnesota, No. 08-46617.
(Reporting by Phil Wahba, editing by Maureen Bavdek and Matthew Lewis) Keywords: POLAROID/AUCTION (phil.wahba@thomsonreuters.com; + 1 646 223 6128; Reuters Messaging: phil.wahba.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.