ALEXANDRIA, Va. \u00e2\u20ac\u201c A committee of unsecured creditors has
\n\t\t
\nobjected to a plan by Florida-based Sun Capital to buy upholstery manufacturer Rowe Furniture for $30 million in cash.<\/p>\n
The creditors\u00e2\u20ac\u2122 attorneys said the proposed purchase price was well below the $55 million they believe the company would be worth if it were sold in pieces.<\/p>\n
The objected was filed in U.S. Bankruptcy Court for the Eastern District of Virginia here earlier in the week.<\/p>\n
Creditors said the value of the company\u00e2\u20ac\u2122s headquarters in McLean, Va., two manufacturing plants in Salem, Va., and two in Missouri would have a liquidation value of nearly $26 million and that other property, including machinery and equipment, inventory and raw materials, could be worth $29 million in liquidation value.<\/p>\n
They also asked that the sale process be slowed to give other prospective bidders time to participate.<\/p>\n
Earlier, the Lexington-Rowe affiliate of Sun Capital said it would pay $24 million in cash and assume $6 million in liabilities to buy Rowe\u00e2\u20ac\u2122s manufacturing operations. An auction hearing, with Sun Capital the lead bidder, is scheduled in court here for Friday.<\/p>\n
Sun Capital said it hopes to close the sale by Jan. 31.<\/p>\n
The creditors committee is also objecting to a request for additional bidders to start with a bid of $32.3 million, which would more than cover a $1.05 million fee to Sun Capital if the private equity fund\u00e2\u20ac\u2122s bid is bested at auction.<\/p>\n
Rowe filed for Chapter 11 bankruptcy protection Sept 18, listing assets of $130.8 million and liabilities of $93.3 million. It has since liquidated its Atlanta-based home furnishings chain, Storehouse.<\/p>\n","protected":false},"excerpt":{"rendered":"
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