PTC Alliance faces stalking horse objections (UPDATE)

Dec 22, 2009 | 10:27 AM | Maria Guzzo

PTC Alliance Corp. is favoring its stalking horse as the best bidder at an auction of the company's assets, although the sale hearing will continue on Jan. 4 to resolve objections surrounding the bid, the company said late Monday.

Wexford, Pa.-based PTC Alliance said funds managed by Black Diamond Capital Management LLC, through special purpose vehicle BD PT Acquisition Inc., submitted the highest, best or otherwise financially superior offers for both the purchase of substantially all of the company's assets in the United States and for the stock of PTC Alliance's non-debtor German subsidiary, Wiederholt GmbH.

PTC Alliance, in consultation with the official committee of unsecured creditors, said it selected the bids submitted by BD PT Acquisition Inc. as the successful bids at a court-authorized auction on Dec.17. A hearing to consider approval of the sales began Dec. 18 and will resume Jan. 4, 2010.

ArcelorMittal USA, the United Steelworkers union, John Maneely Co., CIT Middle Market Loan Trust III, CIT Group/Business Credit Inc. and Grand Central Asset Trust on Dec. 11 filed court documents objecting to the deal, suggesting Black Diamond and PTC Alliance were thwarting efforts by others to bid on the company.....