(Reuters) – Los Angeles-based private-equity firm The Gores Group has sought bankruptcy court approval to buy NEC Holdings Corp, a privately held envelope maker, for $134.5 million, subject to higher bids at an auction.
A unit of The Gores Group will be the stalking horse bidder for NEC’s assets and set the floor at the court-supervised auction, which will be open for higher and better offers, NEC said in court papers filed on Friday.
NEC and 27 affiliates filed for bankruptcy protection in June after three years of rising losses and falling sales.
On June 30, NEC’s rival Cenveo Corp (CVO.N) said it offered to buy the assets for at least $140 million in cash and had asked U.S. Bankruptcy Judge Peter Walsh to void any agreement that prevents NEC from seeking competing offers.
Uniondale, New York-based NEC, which claims to be the largest privately held envelope maker in the United States, is the parent of National Envelope Corp.
The case is In re: NEC Holdings Corp, U.S. Bankruptcy Court, District of Delaware, No. 10-11890. (Reporting by Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier)