Chapter 11 bankrupt supplier/distributor Kevco Inc. is proposing to sell its Duo-Form Division to a company owned, in part, and managed by Duo-Form senior management.
The proposed sale to Duo-Form Acquisition Inc. would be for $5.5 million.
The sale of Duo-Form, based in Edwardsburg, Mich., needs to be approved by the U.S. Bankruptcy Court in Fort Worth, Tex.
Kevco will seek court approval as soon as possible. It anticipates a court hearing on the proposed Duo-Form sale later this month.
The court also needs to approve the procedures Kevco will use to obtain more bids for Duo-Form. If Kevco eventually sells Duo-Form to a higher bidder, then Kevco would have to pay a break-up fee to Duo-Form Acquisition, according to Kevco.