Daily News: July 26, 2012

Northstar Announces Court Approval of Sale Agreement

Northstar Aerospace, Inc. announced that the previously announced asset purchase agreement entered into with Heligear Acquisition Co. (as U.S. purchaser) and Heligear Canada Acquisition Corporation (as Canadian purchaser), each affiliates of Wynnchurch Capital, Ltd, which provides for the sale of substantially all of the operating assets of Northstar for an aggregate purchase price of approximately $70 million, together with the assumption of certain liabilities, was approved by the Ontario Superior Court of Justice (Commercial Division), which is supervising the proceedings of the Corporation and certain of its Canadian affiliates under the Companies’ Creditors Arrangement Act (the CCAA Proceedings) and by the U.S. Bankruptcy Court for the District of Delaware, which is supervising the proceedings commenced under Chapter 11 of the U.S. Bankruptcy Code by certain of its U.S. subsidiaries (the Chapter 11 Proceedings).

Closing of the transaction is scheduled for five business days after the satisfaction or waiver of all conditions precedent to the asset purchase agreement. Based on the anticipated proceeds it is expected that there will be insufficient proceeds to repay Northstar’s secured lenders.

Northstar Aerospace, Inc. is an independent manufacturer of flight critical gears and transmissions in North America.

Wynnchurch Capital, Ltd. is a middle-market private equity investment firm.

Previously on abfjournal.com:

Northstar to Seek Court Approval of Boeing Release, Monday, July 02, 2012