DDI Vendors Could Still Lose Millions in Anixter Deal
DDI Vendors Could Still Lose Millions in Anixter Deal
Jason Sandefur
Anixter International CEO Robert Grubbs said the higher price his company paid for bankrupt Distribution Dynamics Inc. would limit funds to pay unsecured vendors. “Due to the higher purchase price paid as a result of the active bidding process, Anixter now expects that if it purchases any valid pre-petition claims that the aggregate amount of such purchased claims will be substantially less than was originally contemplated,”” Grubbs stated. Anixter outbid Fastenal for the Eden Prairie, MN-based fastener supplier, paying $32.8 million, more than 30% more than Anixter’s original offer of $25 million.
Grubbs acknowledged the loss that DDI suppliers took. “We also recognize the losses incurred by the suppliers to the DDI business and we look forward to new mutually beneficial relationships as we go forward,”” he offered.
Several prominent fastener suppliers, including Textron Fastening Systems and Porteous Fastener Co., are collectively owned millions by DDI. The bankruptcy judge has set aside a $4 million fund to pay DDI creditors. The funds will not be disbursed before July 15, 2004. �2004 FastenerNews.com
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