The Miami-based All American Semi, a electronics and semiconductor distributor, has announced that it received U.S. bankruptcy court approval on June 5 to proceed with the sale of substantially all of its assets to a two-party consortium of private equity firm Rock River Capital LLC and the company's senior secured lenders for which Harris N.A. acts as agent. The sale is expected to close this week for an aggregate purchase price of $15.2 million, which will be paid to Harris N.A. and used in the form of a reduction in the senior secured lenders' secured claim.

In April, All American Semi announced that it had filed for bankruptcy relief from the United States government and initiated steps to sell its assets through a Chapter 11 sale process.
  
On Monday, the company announced that Rock River Capital was the successful bidder for substantially all of the company's operating assets. The private equity firm is expected to continue to operate the acquired assets as a "going conern," which indicates that while the company is still able to stay somewhat afloat, it is likely that there are major changes for the its operations on the horizon .

All American has had significant struggles for some time now. In April, the company reported that it had incurred an net loss totaling as much as $11.8 million for fiscal 2006 -- a staggering drop from the $582,000 in income it made during fiscal 2005.

By: DocMemory
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