Industrial Opportunity Partners (IOP), a private equity firm based in Evanston, Ill., has surfaced as a “stalking horse” in the sale of assets of Pace American Inc., a cargo trailer manufacturer with plants in five states.
A June 15 “Article 9” auction has been scheduled in Chicago to sell the assets of Pace American, but IOP has submitted a bid in advance of the auction, making it the “stalking horse” in the proposed sale. The value of its bid was not revealed. IOP will become the new owner of Pace American’s assets, unless another firm comes forward and submits a bid of at least $750,000 higher than IOP’s, according to a notice publicizing the sale.
The deadline to submit a bid is noon CST June 11.
The Private Bank and Trust Co., an Illinois-based bank, is Pace American’s lead bank, which is orchestrating the auction to keep Pace American a going concern. In Article 9 sales, lenders typically do not expect to recoup the total amount owed to them, but such sales are viewed as the best alternative under the circumstances.
Pace American is headquartered in Middlebury, Ind., and has a plant there as well as in Fitzgerald, Ga., Lebanon, Ore., Hurricane, Utah, and McGregor, Texas.
If its bid prevails, IOP reportedly intends to maintain the Pace American name and keep the management team intact.