NEW YORK (Reuters) – Camera maker Polaroid Corp has received bankruptcy court approval to hold an auction of its assets in March, according to court documents.
U.S. Bankruptcy Judge Gregory Kishel approved the company’s plan to sell itself after a hearing on Wednesday, according to court documents filed on Wednesday night.
PHC Acquisitions, an affiliate of Luxembourg-based private equity firm Genii Capital, was approved to be the lead bidder, or “stalking horse,” at the auction on March 30, the documents showed.
The Genii affiliate has offered to buy the company as a going concern for $42 million plus the assumption of some liabilities.
Polaroid filed for Chapter 11 bankruptcy protection in December amid fraud allegations against the founder of Petters Group Worldwide, which has owned the company since 2005.
The case is In re: Polaroid Corp, U.S. Bankruptcy Court, District of Minnesota, No. 08-46617. (Reporting by Emily Chasan, editing by Gerald E. McCormick)