Malden Mills has been faced with many challenges in its recent re-entry into bankruptcy protection, including the transfer of the case back to its original venue in Massachusetts, which posed the possibility of a considerable delay in the sale of the company’s assets. However, the company was able to impress upon the court the importance of an expedient auction. The court has ordered that all parties interested in the auction must submit a qualified bid by February 15 at 4:30 pm and the auction will take place on February 20, 2007.

Michael Spillane, president and CEO of Malden Mills told The B.O.S.S. Report that the change in venue turned out to be a positive turn of events for the company, because he was given a favorable schedule for the auction, which was the goal of the filing in Delaware. Under the previous court in Delaware, the Stalking Horse Bidder was identified as Gordon Brothers, a company that specializes in dispositions, appraisals, acquisitions, and capital solutions. However, under the new court in Massachusetts, Pipevine MMI, LLC, a supsidiary of Chrysalis Capital Partners has been named the Stalking Horse Bidder.

According to the purchase agreement between Pipevine and Malden, the $44 million bid submitted by Pipevine will serve as a “minimum floor bid,” and Pipevine will be paid $500,000 as a fee to reimburse any expenses in the auction process. Any parties wishing to submit a “qualified bid” must exceed Pipevine’s offer by $3 million, plus the $500,000 fee, plus an additional $250,000. This brings the opening bid price up to $47.75 million. In addition, the court has requested that bidders submit “to the extent possible” their intentions concerning Malden’s current employees and the ongoing operation of Malden Mills.