American Architectural Inc. files motion to auction assets in Chapter 11 case
September 10, 2012
American Architectural Inc. of Bensalem, Pa., filed a motion to sell its assets in the company's Chapter 11 case in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The motion requests authorization to auction certain assets free and clear of liens, claims and interests, and for the assumption and assignment of subcontracts. The motion requests an expedited hearing, and a limited and reduced notice period, according to court documents. The court has not yet ruled on the motion.
The auction would include AAI assets and the company's facility, a 98,000-square-foot commercial building that includes a "state-of-the-art manufacturing facility and administration offices," according to the court documents.
AAI filed for Chapter 11 in June and has continued operations since then. At the time of the Chapter 11 petition, the company had a backlog of 13 subcontracts, including six bonded projects, with "revenues in excess of $29 million." Since the petition, seven of the projects have been completed, will be completed shortly, or have been terminated. These projects will not be available for sale at the auction, according to court documents.
The six subcontracts included in the motion to be available for sale at auction: Carnegie 57; two contracts at World Trade Center One/Freedom Tower; two contracts at the World Trade Center Path Hall, including a contract for the elevator; and World Trade Center Tower 4.