Sun Capital affiliate looking to buy Vitro U.S. subsidiaries; files objection to bidding procedures

American Glass Enterprises LLC, an affiliate of Sun Capital Partners, has filed an objection to the bidding procedures related to the sale of Vitro SAB's four U.S. subsidiaries: Vitro America, Super Sky Products, Super Sky International and VVP Finance Corp., according to documents filed May 3 in the United States Bankruptcy Court for the Northern District of Texas Dallas Division.

According to court documents, American sent a letter to the debtors, expressing its desire to purchase substantially all of the debtors' assets on substantially similar terms and conditions to Grey Mountain, except American offered a purchase price of $45 million and indicated that it would forego a break up fee.

This action followed Vitro America's April 6 announcement that the company and three other U.S. subsidiaries of Vitrohad entered into an agreement to sell substantially all of the assets of Vitro America and Super Sky to an affiliate of Grey Mountain Partners, LLC, a private equity firm based in Boulder, Colo. That Grey Mountain affiliate proposed a purchase price of $44 million, according to court documents.

American is asking thatits higher bid of $45 million serve as the stalking horse bid to beat at auction. In addition, it is asking that Grey Mountain's break up fee request be denied and other aspects of the bid procedures be modified.

Sun Capital Partners, of which American Glass Enterprises is an affiliate, is a private investment firm specializing in leveraged buyouts and investments. It purchased Arch Aluminum & Glass, Tamarac, Fla., in February 2010. More recently, it was announced that a Sun Capital affiliate had acquired United Glass Corp., Louisville, Ky.