CSC Lawyers: Purchase is still possible
CSC's attorney said a prospective buyer could be announced today.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- Lawyers in the bankruptcy case of CSC Ltd. say time is running short, but not necessarily out, for prospective buyers.
Atty. Matthew R. Goldman of Cleveland said he's been in contact with two groups that have shown an interest in buying the idled Warren plant.
"I don't know if [an offer] is going to happen, but I like that it's a possibility," said Goldman, who works for CSC's law firm of Baker & amp; Hostetler.
Goldman would not identify the groups or say where they are from, but said an announcement from one of them about its intent to make an offer could come as soon as today.
"If that does happen, it will be a welcome development," Goldman said.
Here's the deadline: If either of the groups is truly interested, though, it'll have to hustle to submit a bid before an Aug. 21 bankruptcy court hearing, Goldman said.
That's when Judge William Bodoh is to decide on a motion to either dismiss the bankruptcy or convert it from Chapter 11 to Chapter 7.
Chapter 11 allows companies to keep operating while they attempt to restructure, but Chapter 7 generally calls for a company's assets to be liquidated and its proceeds distributed to creditors.
Atty. Mark Hebbeln of Chicago, representing a group of CSC creditors, filed the motion earlier this week. He said it doesn't appear there has been any substantial progress toward finding a buyer for the plant.
Sale possible: If Judge Bodoh decides to convert the case to Chapter 7, that would not necessarily close the door on the plant's being sold, Hebbeln said. If the court-appointed bankruptcy trustee locates a viable buyer during Chapter 7 proceedings, it could still be sold.
"If there is an interested buyer, that's something our constituency would be interested in hearing about," he said.
The plant has been closed since April 13, leaving its 1,300 employees out of work. An auction was to take place in early July but was canceled due to a lack of interested bidders.