YOUNGSTOWN, Ohio, July 15, 2016 (GLOBE NEWSWIRE) -- Commercial Metal Forming (“Commercial” or the “Company”), one of four industrial subsidiaries of Constellation Enterprises LLC (“Constellation”), today announced that it has entered into an asset purchase agreement with CE Star Holdings, LLC, a newly-formed entity organized by a group of Constellation’s secured noteholders, to purchase substantially all of the Company’s assets as a going concern, as well as certain other assets of Constellation’s subsidiaries. The sale agreement is being entered into in furtherance of the Company’s bankruptcy court approved bidding procedures for the marketing and sale of the Company and its affiliated entities. This sale transaction will be subject to higher or better bids at an auction scheduled for August 9, 2016.
Commercial, together with Constellation and Constellation’s other subsidiaries, announced on May 16, 2016 they were voluntarily restructuring debt obligations under protection of Chapter 11 of the U.S. Bankruptcy Code. The Company continues to serve its customers and operate its business in the ordinary course during the restructuring.
The Company believes this sale transaction will fulfill its goal to ensure the successful future of the business following the sale. The transaction is subject to the auction process followed by bankruptcy court approval. Commercial also continues the marketing process with other parties who will have the opportunity to submit competing bids.
With bidding procedures established and an auction date scheduled, Commercial is now taking certain other steps to facilitate a sale transaction, including providing a notice to employees in compliance with the Worker Adjustment Retraining Notification (“WARN”) Act. This notice will facilitate the sale of the Company’s assets pursuant to the court-approved auction, and allow the buyer to realize the benefits afforded by the bankruptcy process.
“The WARN notice is important to protect the economic interests of our valued employees while also allowing for the completion of the asset sale. We strongly believe our employees are our most valuable asset, and that any buyer will want to hire most or all of our employees. As we work with all potential buyers, we believe the sale process is the best way to ensure the future success of the business, and its customers, vendors and communities,” said Bob Messaros, President of Commercial Metal Forming.
Kramer Levin Naftalis & Frankel LLP and Richards, Layton & Finger P.A. are serving as legal advisors.
Additional information, including court filings and other documents related to the restructuring, can be found by visiting http://dm.epiq11.com/COE.
Commercial Metal Forming is a leading manufacturer of tank head and tank head accessories, focused on providing highest quality standards and unparalleled Customer Service on on-time delivery, lead-time, quote responsiveness.
For further information, please contact: Jennifer E. Mercer Epiq Strategic Communications for Constellation Enterprises LLC 310-712-6215 firstname.lastname@example.org
Source:Constellation Enterprises, LLC