Auto supplier Noble says Patriarch "stalking horse"
Mon May 4, 2009 3:47pm EDT
By Phil Wahba
NEW YORK, May 4 (Reuters) - Bankrupt auto parts supplier Noble International Ltd (NOBL.O) said in a court filing that an affiliate of investment firm Patriarch Partners LLC has put in an $11 million "stalking horse" bid for its assets.
Noble, which filed for bankruptcy protection for its North American operations on April 15, is seeking permission to sell its assets to Patriarch unit Noble Intentions LLC, citing "liquidity concerns and in an effort to maximize the values," according to documents filed on Friday in federal bankruptcy court in Michigan.
A "stalking horse" makes the lead bid at a bankruptcy auction and creates a floor for the bidding, in exchange for certain protections that often include break-up fees.
A sale hearing is set for May 22.
In its bankruptcy filing in April, Noble cited a steep decline in auto production and tight credit.
The Troy, Michigan-based company, which makes laser-welded blanks and roll-formed products and other steel components, has supplied parts to General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler LLC.
Noble provides steel structural components to the auto industry, including parts that increase vehicle body strength and reduce weight. Customers also include Daimler AG (DAIGn.DE), BMW (BMWG.DE), Fiat SpA (FIA.MI) and Honda Motor Co Ltd (7267.T).
The case is in Re: Noble International Ltd et al, U.S Bankruptcy Court, Eastern District of Michigan, No. 09-51720. (Reporting by Phil Wahba; editing by Carol Bishopric)
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