CLARK, INVESTOR AGREE ON ASSET SALE

News Story
- 18 Dec 2002 ( #88 ) - LEXINGTON, United States
1 min read
Clark Material Handling Company believes its North American unit is within weeks of emerging from the bankruptcy status it has carried since 2000.

Clark MHC yesterday announced it had signed an agreement to sell almost all its worldwide assets to an affiliate of private investment firm Sun Capital Partners Inc. The deal's value was "not available at this time", said Clark chief executive Kevin Reardon.

Clark lawyers filed a reorganisation plan with the US Bankruptcy Court in Wilmington, Delaware, yesterday and will soon file papers seeking approval of the sale, Mr Reardon said.

The pending transaction with Sun is contingent on other bidders making offers deemed higher and better for Clark, a possibility Mr Reardon said was "very remote because of the complexity of the deal".

Clark MHC expects the court to consider approving the sale in mid-January, and the deal should be closed by the end of January. Court approval of the asset purchase agreement would be a milestone and a financial transition for the equipment maker, Mr Reardon said.

Clark applied in April 2000 for protection from creditors under Chapter 11 of the US Bankruptcy Code, listing USD349 million in assets and USD374 million in debts.

In August, Clark said Sun would settle with Clark bondholders and creditors, who were then owed about USD250 million. Clark worked on the transaction with Sun's headquarters in Boca Raton, Florida, and another USA office in New York, Mr Reardon said.

Subsequent to the partnership, Clark, which makes electric and internal combustion forklifts, narrow-aisle forklifts, electric pallet jacks, stackers and electric tuggers, embarked on an aggressive restructuring to reduce manufacturing costs.
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