May 17, 2017 (STLRealEstate.News) Katy Industries is already planning to sell the majority of its assets to a new investment vehicle co-owned by Highview Capital LLC and Victory Park Capital Advisors today. A company that manufacturers and distributes commercial cleaning and storage products, based out of Maryland Heights, Katy Industries officially filed for bankruptcy this past week. On Sunday, the company announced it had entered into an agreement to sell all of its assets to the Highview/Victory entity for both cash and credit at the end of the sale. In order to facilitate the sale, Katy Industries said it had already filed for Chapter 11 reorganization in Delaware bankruptcy court.
Katy Industries went on to state that the new agreement they struck with Highview Capital and Victory Park would lay the foundation for a long-term financial stability plan that will provide the failing company with the resources and cash flow it needs to sustain its remaining operations. Additionally, Katy is going to allow other companies to bid for the assets being sold as well. The company experts the court-supervised sale process to be completed within the next 60 to 90 days. In the court papers obtained by the St. Louis Business Journal, it showed that Katy listed assets of $821,321 and debts of $58.4 million. Local creditors included are Koller Craft Plastics, with an unsecured claim of $202,639.
The statement went on to claim: “Our goal is to put the company on the proper financing footing, de-lever our balance sheet and use the influx f new funding to recover the business and position our operations for future growth while, at the same time, providing a mechanism to address the liquidity constraints and legacy liabilities that have impacted our ability to operate efficiently and effectively,” said Robert Guerra, president and CEO of Katy Industries. “By utilizing Chapter 11, we are able to ensure an expedited and orderly sale transaction.”
Published at 5:16 a.m. CST