Northstar Aerospace fails to find qualified bidder
July 17, 2012 ByCarey Fredericks
July 17, 2012, Chicago, Il. - Helicopter equipment and repair company Northstar Aerospace Inc. says it has not found a qualified bidder to purchase its business and the original bidders will take control for U.S. $70 million.
The Chicago-based company said Friday Heligear Acquisition Co. and Heligear Canada Acquisition Corp., affiliates of U.S.-based
private equity firm Wynnchurch Capital Ltd., which made a stalking horse bid for the company will acquire its assets.
The proposed deal also includes the assumption of certain unspecified liabilities.
Northstar will seek approval for the bid at a joint hearing of the U.S. court and the Canadian court on July 24.
However, it notes that if approved, there will be insufficient funds to fully repay the company's secured lenders.
The company filed for creditor protection in both Canada and the United States in June while it arranged the sale of its business.
Its U.S. subsidiaries, Northstar Aerospace (USA) Inc., Northstar Aerospace (Chicago) Inc., Derlan USA Inc. and D-Velco Manufacturing of Arizona Inc. filed Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware.
Meanwhile, Northstar Aerospace (Canada) Inc. and certain of its Canadian subsidiaries applied to the Ontario Superior Court of Justice for protection under the Companies' Creditors Arrangement Act.