Lang Bought by Investment Cos. Joint Venture
By Staff -- Gifts and Dec, 10/9/2009 9:36:00 AM
Greenwich, CT – Bankruptcy Judge Kevin Carey of Delaware approved the sale of stationery and gift vendor 
Lang Holdings Inc. to a new corporation called LHI Enterprises Inc. The new company is a joint venture of private equity company Catterton Partners, Greenwich, and an affiliate of Sun Capital Partners Inc., Boca Raton, FL. LHI Enterprises bid $25 million in credit, offsetting debt Lang owes to Catterton and Sun. No other potential buyers placed a bid.
According to the Milwaukee Journal Sentinel, Catterton was Lang's majority stockholder before the company filed for bankruptcy in July, as well as being a lender to Lang, while Sun has backed Lang financially since the case was filed.
After looking for a buyer since March and lacking cash to meet payroll, the company considered shutting down before Lang, Catterton and an investment banker recruited Sun and began setting up the structure that led to the sale.
The buyers said in a court document that they'll hire all of Lang's approximately 220 employees.
Laurie Gilner, president and CEO, told Gifts & Decorative Accessories, “We are excited to be moving forward under this newly formed entity and plan on continuing to bring great art, innovative designs and exciting new products to the industry for many years to come. We are looking forward to launching our new 2010 product lines at the Atlanta Gift Show in January.”
Lang's unsecured creditors objected to the sale: According to the Journal Sentinel, about $12–$14 million in unsecured claims will go unpaid. Also objecting was the U.S. trustee assigned to the case, on the grounds that the bidding rules were drafted to shut out any buyers but LHI Enterprises.
We would love your feedback!
VIEW ALL GALLERIES
