SSG Capital Advisors served as the investment banker to Plastic Suppliers, doing business as Earthfirst, and its affiliates and subsidiaries in the sale of substantially all assets to API Industries, doing business as Aluf Plastics. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of New Jersey.
SSG was retained in August 2024 to serve as Earthfirst’s exclusive investment banker in the exploration of strategic alternatives, including an investment in the business or the sale of its assets. To preserve liquidity and maintain operations, Earthfirst filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Dec. 22, 2024. Prior to the filing, SSG conducted an expansive marketing process that targeted a broad universe of strategic and financial investors. A stalking horse buyer emerged after extensive diligence coordination and negotiations, and the court approved the stalking horse bid from Aluf Plastics of $13 million in conjunction with the bid procedures.
SSG commenced an expedited and comprehensive post-petition marketing process to solicit competing offers to the stalking horse bid. One competing qualified bid was submitted by LicaFlex Packaging USA prior to the Jan. 21, 2025, bid deadline. An auction was subsequently held on Jan. 27, 2025, and multiple rounds of bidding took place. The final bid submitted by Aluf Plastics was ultimately deemed the highest and best at a gross purchase price of $16.3 million, inclusive of the stalking horse bid protections and an inventory reserve adjustment.
SSG’s extensive Chapter 11 transaction experience and ability to create a competitive auction environment enabled the company to repay its secured creditor in full and preserve the business as a going concern for the benefit of customers, vendors, and employees.
Other professionals who worked on the transaction include:
- Stephen M. Packman and Douglas G. Leney of Archer & Greiner, counsel to Plastic Suppliers Inc., doing business as Earthfirst
- Ilana Volkov of McGrail & Bensinger, counsel to API Industries, doing business as Aluf Plastics
Regina Stango Kelbon, Gregory F. Vizza, and Michael A. Morabito of Blank Rome, counsel to the secured creditor - Brett S. Moore and Kelly D. Curtin of Porzio, Bromberg & Newman, counsel to the official committee of unsecured creditors
- Brian K. Ryniker and Jerry D’Amato of RK Consultants, financial advisor to the official committee of unsecured creditors
