CHICAGO, Aug. 24 -- A.B.Dick Company said that U.S. Bankruptcy Judge Charles G. Case II of the United States Bankruptcy Court for the District of Delaware has granted final approval of the Company's $7 million debtor-in-possession (DIP) credit facility, provided by Presstek, Inc. and KeyBank National Association. The Court had previously granted interim approval to borrow up to $3.194 million of the facility. The approval allows A.B.Dick to use proceeds from its pre-petition and post-petition receivables to fund continuing operations during the Chapter 11 process.
The Court also approved procedures for the sale of the Company in accordance with Section 363 of the U.S. Bankruptcy Code. As announced earlier, Presstek has agreed to purchase substantially all of the A.B.Dick assets for an estimated total consideration of approximately $40 million, positioning it as the "stalking horse," or original bidder, in the auction process. The Presstek offer sets a floor for other bids. Alternative offers must be at least $41,200,000 in value, accompanied by a cash deposit of at least 5% of the offered price, and in accordance with all other terms in the complete bidding procedures. Following evaluation of the written offers determined to be fully binding commitments, an auction will be held for qualified bidders on October 29. The Court did not set a date for a hearing to obtain court approval of the highest and best offer, but it is expected that the hearing will take place the first week of November.
Written offers must be submitted by the close of business on October 27, 2004, to H. Jeffrey Schwartz at Benesch, Friedlander, Coplan & Aronoff LLP, 200 Public Square, 2300 BP Tower, Cleveland, Ohio 44414, (216) 363-4588. Email: [email protected]
To obtain the complete bidding procedures, interested parties should contact Glenn Pollack at Candlewood Partners at 10-1/2 East Washington Street, Chagrin Falls, Ohio 44022, (440) 264-8004. Email: [email protected]
On July 13, 2004, A.B.Dick, a privately held, worldwide supplier of equipment and supplies to the graphic arts and printing industry, filed a voluntary petition for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code along with its parent company, Paragon Corporate Holdings, Inc., and the Paragon subsidiaries Interactive Media Group and Multigraphics LLC. A.B.Dick at the same time announced that it had signed a purchase agreement with Presstek, Inc, for Presstek to acquire the business and assets of A.B.Dick, subject to Court approval. During the Chapter 11 and sale process, A.B.Dick and all its units continue to manufacture and deliver products and provide services to customers as usual.