Joint venture partners Hilco Consumer Capital LP and Gordon Brothers Brands LLC won the bankruptcy auction for Polaroid Corp.'s assets following a long and contentious auction process that could get messier later Monday.
Despite a bankruptcy judge's approval of the JV's $85.9 million bid, Patriarch Partners LLC founder Lynn Tilton appearing on CNBC Friday vowed to keep the fight going -- it has already raged for two weeks. Tilton told CNBC that despite making a higher offer than the liquidators, her firm lost because, as she said, she "wasn't liked." Patriarch will be in court on Monday, filing a temporary restraining order to stop the deal from closing.
If the Gordon-Hilco JV succeeds in buying Polaroid, it will join defunct brands Bombay Co., Linens 'n Things and Sharper Image in the pair's stable.
As for Patriarch, Tilton's willingness to fight clearly explains the company's recent success in buying distressed assets of American LaFrance LLC, NetVersant Solutions Inc. and Red Shield Environmental LLC. - Matthew Wurtzel
By Edward Schneidman, Michael Blair and David Malinger, Mayer Brown
Real estate sponsors that might wish to undertake an IPO will need to consider a wide variety of issues and begin to take action long before the first filing with the SEC.
Paulson's proposal to purchase an equity stake in Yellow Pages publisher Idearc is the second time in recent months an investor group has used its prepetition debt position to execute a bargain price 'exit LBO.'
