Gaspari Moves to AuctionOctober 23, 2014 – In The News
Joshua Klein was featured in The Deal article "Gaspari Moves to Auction." Full text can be found in the October 23, 2014, issue, but a synopsis is below.
Gaspari Nutrition, Inc., a sports nutrition supplement company, was cleared to be auctioned by Allegro Nutrition LLC.
The U.S. Bankruptcy Court for the District of New Jersey in Trenten approved the bidding procedures which were based on an offer of $5 million from Allegro Nutrition.
According to debtor counsel Joshua Klein and court papers, rival bids are due on November 14th, the auction takes place on November 19th, and the sale hearing is on November 24th.
Klein said that the court dropped the initial auction overbid from the requested amount of $120,000 to $55,000 to make the initial overbid $300,000, which includes expense reimbursement and a breakup fee.
The bidding increments for the auction stayed at the proposed $100,000, but a few other changes were made to the bidding procedure, Klein said. These would include changing the official committee of unsecured creditors to a consultation party for the sale instead of a notification party.
Heritage Equity Partners, Gaspari’s investment banker, mailed more than 1,000 parties and called 175, Klein reported. This resulted in five letters of intent including the favorable $5 million offer from Allegro Nutrition.
Then, on October 14th, Gaspari filed for Chapter 11 bankruptcy petition.