Ronco calls off asset auction - selling to private equity
Published August 6th, 2007
Ronco Corp. has called off an auction of its assets after failing to attract any qualified bids for its collection of rotisserie ovens, knife sets and food dehydrators. Instead, it plans to sell its business to a unit of Marlin Equity Partners LLC, a Los Angles private equity firm.
Ronco says in bankruptcy court papers that it expects to clear about $6.5 million in cash from the sale. But that won’t be enough to pay off secured lender Laurus Master Fund Ltd., which is owed $8.1 million.
Simi Valley, Calif.-based Ronco said it had hoped to receive higher offers than Marlin Equity’s “stalking horse” bid. But no rival bidder stepped forward before the July 30 deadline, forcing Ronco to pull the plug on the auction.
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