Dlubak Corp.,a supplier of security glass, and architectural flat and bent glass laminates, has been acquired by Grey Mountain Partners, parent company of Consolidated Glass Holdings, by outbidding two other companies.
Private equity firm Grey Mountain Partners, parent company of Consolidated Glass Holdings, has purchased the assets of Dlubak Corp., outbidding GGI and Oran Safety Glass Israel, submitting a high offer of USD 3.25 million, according to court documents.
According to the terms of the purchase, Grey Mountain will also “pay and be responsible for payment of vacation pay owed to employee union members in the approximate amount of USD 130,000 … and enter into a three-month extension of the current collective bargaining agreement with the union.”
Grey Mountain will not take on any of Dlubak’s claims, liens, encumbrances or other interests, including debts regarding the more than 200 creditors listed in the court documents, including Allmetal, Bottero Flat Glass Inc., Bromer Inc., Bystronic, C.R. Laurence Co., Consolidated Glass Corp., DuPont, Glaston America Inc., PPG Industries, Precision Glass Bending Corp., Quanex, Solutia Inc., Trulite and Woods Powr-Grip.
In August, shortly after it filed for Chapter 11 bankruptcy, Dlubak announced it would pursue a sale to a strategic buyer, naming Grey Mountain Partners as the “stalking horse bidder.” At that time, Grey Mountain had proposed paying USD 2 million for Dlubak’s non-real estate assets. GGI, Oran Safety Glass Israel, OSG Inc. USA and Curbell Plastics filed objections to the sale, resulting in a court decision to hold the auction, 23 September.
According to the court documents, “Stalking Horse Bidder [GGI] shall be paid a break-up fee in the amount of USD 60,000 from the proceeds of sale. If [Grey Mountain] fails to close on the sale, [Dlubak] is authorized to engage in a sale with Oran Safety Glass in accordance with the terms of Oran Safety Glass’ final bid at auction.”