After Mulling Options, FGH Will Protect Its Assets
Friede Goldman Halter Inc., manufacturer of offshore equipment for the energy industry, on Thursday said it filed for protection under Chapter 11 of the U.S. bankruptcy code. The announcement comes a day after the announcement that investment group Pegasus Partners II would not pursue an agreement to provide Friede Goldman Halter with a $100 million loan. Friede Goldman filed its bankruptcy petition, allowing for reorganization of its debts, in the Bankruptcy Court of the Southern District of Mississippi. The company's 31 subsidiaries that are co-borrowers or guarantors also plan to file reorganization petitions, Friede Goldman said.
FGH Anticipates Sale Completion
Friede Goldman Halter, Inc. announced that the purchaser has completed financing arrangements for the sale of its Friede Goldman Offshore division based in Pascagoula, Mississippi. On November 15, Friede Goldman Halter, Inc. (FGH) entered into a definitive contract to sell the assets of its Offshore division to ACON Offshore Partners LP, a Delaware limited partnership and an affiliate of ACON Investments, in a transaction valued at approximately $61 million (USD). The sale hearing will take place in the United States Bankruptcy Court for the Southern District of Mississippi, Southern Division, on December 16, 2002. Court approval is expected, with a year-end closing anticipated.
FGH Contracts to Sell Friede Goldman Offshore
Friede Goldman Halter, Inc. has completed the previously announced auction of its Friede Goldman Offshore division and has entered into a contract to sell the assets to ACON Offshore Partners LLP, a Delaware limited partnership, for approximately $61 million. The purchase price consists of $18 million in cash plus the assumption of approximately $43 million in secured debt. The sale is contingent upon the buyer receiving specific refinancing terms from certain existing secured creditors by November 22, 2002 and the receipt by the seller of the buyer's contract deposit on the same date. If these conditions are met, the sale would be presented on December 16, 2002 to the United States Bankruptcy Court for the Southern District of Mississippi, Southern Division, for approval.
