P.M. BRIEFING : Bank Backs Off Allegheny Loan
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PITTSBURGH — Allegheny International Inc., the maker of Sunbeam and Oster brand appliances, today said Wells Fargo Bank has withdrawn its $400-million financing commitment for a bankruptcy reorganization plan.
Financial commitments are being discussed and other financial alternatives are being explored, AI said in a statement.
Allegheny filed its most recent reorganization plans Oct. 11 under which it and its subsidiaries would emerge from Chapter 11 protection.
The Wells Fargo capital withdrawal comes in the wake of an offer by the New York investment group Japonica Partners to buy AI for $638.8 million. The offer made late Wednesday is less than the $700 million Japonica bid last July for AI. Japonica said it would consider paying more than $700 million for AI if it is allowed to review certain undisclosed financial information.
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