A bankruptcy court judge in Minnesota approved Genmar Holding's motion to enter into an exclusivity and expense agreement with a potential stalking horse.
Genmar has identified a potential stalking horse as "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."
Genmar chairman Irwin Jacobs has confirmed he is bidding for the company and has said he plans to make the highest offer. No other potential bidders have been publicly identified.
Jacobs said this morning he could not comment further on his bid.
"My interest was in the company intact, for the most part, that's all I can tell you," he added. "I can't give you anything more than what's out there right now."
Genmar announced last week it was pursuing a sales process rather than reorganization as a means to exit from Chapter 11 bankruptcy.
"I tried to do the reorganization and couldn't get the cooperation of everybody necessary with which to do it," Jacobs previously told Soundings Trade Only. "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."
In an unrelated motion, the judge this week also extended the period in which Genmar has the exclusive right to file plans for reorganization through Jan. 31, 2010, and the exclusive right to obtain acceptances of such plans was extended through April 1, 2010.
The judge also authorized an amendment of the debtor-in-possession financing with senior lenders.