Volume 48, Issue 10- October 2013
Grey Mountain Strengthens Industry
Grey Mountain Partners is now another fabricator company stronger. The Boulder, Colo.-based investment company was the big winner in the September 23 auction of Dlubak Corp.’s non-real estate assets, outlasting Secaucus, N.J.-based General Glass International (GGI) and Oran Safety Glass (OSG) with a bid of $3.25 million.
As additional terms of the deal, Grey Mountain Partners agreed to extend the contracts for Dlubak Corp.’s union employees for 90 days and to pay an additional $130,000 for all the accrued vacation for union members.
The deal was finalized and approved September 24 by the U.S. Bankruptcy Court of the Western District of Pennsylvania. Judge Jeffrey A. Deller wrote that his decision to officially okay the transaction was “in the best interest of the debtor, its estate, creditors and other parties-in-interest,” according to papers filed with the U.S. Bankruptcy Court of the Western District of Pennsylvania. Likewise, the agreement figures to result in a pot of “$400,000 to 500,000” for creditors seeking money owed them by the Blairsville, Pa.-based Dlubak Corp., which filed for Chapter 11 bankruptcy in August. The sale included equipment and inventory, books and records, all intellectual property rights, all products in development and all cash, cash equivalents and accounts receivable.
The auction began in Pittsburgh at 10 a.m., rising in minimal increments of $50,000.
“It was a competitive auction,” says Lawrence Bolla, the Pennsylvania-based attorney representing the Unsecured Creditors Committee. “The results were good for the state, good for the unsecured creditors.”
Grey Mountain Partners had earlier reached a tentative “stalking horse” agreement of $2 million with Dlubak Corp., only to watch GGI later eclipse that offer with a $2.2 million one of its own.
OSG, which is a Delaware-based subsidiary of OSG Israel, began the day’s bidding with an offer of $2.475 million.
Dlubak Corp. had listed more than 200 creditors upon filing for bankruptcy on August 7, including PPG Industries, Quanex, Trulite, Intertek, Allmetal, Bayer, Bottero Inc., Bystronic, C.R. Laurence Co. and Glaston America Inc., among others. Curbell Plastics is easily the largest creditor, owed more than $905,000 according to court records. Dlubak Corp.’s estimated assets and estimated debts are both listed between $1 million and $10 million, according to court records.
Over the past few years Grey Mountain Partners quickly has established its presence in the glass industry, acquiring a number of companies, including Binswanger Glass, Columbia Commercial Building Products, Custom Components, Global Security Glazing, Hawkins Architectural Products, Insulpane of Connecticut, North American Specialty Glass, Orchard Glass and Solar Seal Company. In addition, in 2012 Grey Mountain acquired the assets of Santelli Tempered Glass’s Ocala, Fla., location; the Monessen, Pa.-based company had ceased operations last year. Grey Mountain was also the stalking horse bidder for Arch Aluminum & Glass in 2011, a company that ultimately went to Sun Capital Partners.
At press time representatives of Grey Mountain Partners had not responded to requests for comment.