Genmar Holdings is now pursuing a sales process rather than a reorganization as a means to exit from Chapter 11 bankruptcy, according to court filings.
While he couldn't discuss specifics, Genmar chairman Irwin Jacobs confirmed he is a bidder for the company.
"Unfortunately, I can't give you the information for that right now because it's not public, but I plan on being a bidder for the assets and continue the business as it is," he told Soundings Trade Only.
"I tried to do the reorganization and couldn't get the cooperation of everybody necessary with which to do it," Jacobs said. "I was going down that path and, frankly, had what I thought was, in place, a transaction to do it. But there were people who weren't cooperating with it, so I had to go in a different direction."
Jacobs said he plans to bid on "primarily the company" as a whole, though he's not sure what other potential bidders are planning.
"Only the court can be the decision maker, and that's based on who pays the most for what it is. And obviously that's what my intention is, but we'll just have to wait and see," he added.
Though he couldn't go into many specifics, Jacobs said he hopes to file papers with the court next week that will make clear his position.
In papers filed with the court, Genmar says it has identified a "potential stalking horse" - "the party that has submitted the best offer to date from the standpoint of cash consideration and probability of consummation." It does not, however, identify that party, in order to "preserve the integrity of the sale process."
Though Genmar had been looking at other options, court documents say, "the potential stalking horse believes that pursuit of both strategies will be dilutive of management's efforts. Therefore, it has demanded that debtors enter into the exclusivity and expense agreement."
Genmar filed for Chapter 11 June 1.
- Beth Rosenberg