Court Approves M. Fabrikant & Sons Assets Sale

The U.S. Bankruptcy Court in Manhattan has approved Wilmington Trust Company and Surya Capital LLC to purchase inventory and other assets from M. Fabrikant & Sons.

According to The Associated Press, Wilmington Trust Company, a corporate lender, will pay $41.5 million for the bankrupt company's assets, as documented in court records. It is unclear how much hedge fund Surya Capital will pay.

Fabrikant filed for Chapter 11 protection last November. In April, the company petitioned the court for the sale, setting a total reserve price of $48.5 million.

At the time, it said that it hoped to sell the entire company to a single bidder; however, Fabrikant has broken down its assets into main groups, each with a reserve price, creating an option for it to be sold in parts.

According to the Chapter 11 filing, M. Fabrikant & Sons has $363 million in debts and $225.9 in assets.