Troubled aerospace manufacturer fails to find qualifying bidder in take over efforts.
July 16, 2012
by The Canadian Press
CHICAGO: 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 US$70 million.
The Chicago-based company said last week that Heligear Acquisition Co. and Heligear Canada Acquisition Corp., affiliates of US-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 US 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 US 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. 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.
Northstar Aerospace is an independent manufacturer whose principal products include helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of components and transmissions.
©The Canadian Press