Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 10, 1990 TAG: 9007100076
SECTION: BUSINESS PAGE: A3 EDITION: METRO
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE: LENGTH: Medium
But Michael Sincleair was given until July 19, when Bankruptcy Judge H. Clyde Pearson has scheduled another hearing on sale of the exercise equipment plant.
Pearson ruled Monday that the first major offer - by Dan Baldwin, former president of Nautilus, and Charles Ho, a Florida investor - should move ahead.
A hearing on confirmation of a bankruptcy plan for the company is set for July 31.
Sincleair met Pearson's order to deposit $250,000 by Friday, and his attorney said he had a faxed message that the rest of the $1 million was coming from London by way of a New York lawyer.
The Sincleair bid of $18 million is about $2.4 million more in cash than the Baldwin-Ho offer, said Benjamin Ackerly, an attorney for Prudential Insurance, a major creditor.
James Walker, Sincleair's attorney, said he received the court's clearance for his offer only Thursday.
He asked for more time in order to go to Independence "to count the trucks" and examine the books at the Nautilus plant.
Because Sincleair hasn't put up the full deposit, Troy Phillips, attorney for Baldwin and Ho, protested that he "should not be on the playing field because he's not at risk." Baldwin and Ho met their requirement to deposit $1 million.
Sincleair, who lives in Fort Worth, was described by Pearson as "a high-level consultant for Fortune 500 companies, who acquires and turns around ailing factory operations."
Sincleair said he understands licensing, royalties and trademarks from his work as a Memorex executive.
After the hearing, Baldwin, who built and operated the Independence plant, said, "I think we'll prevail."
Colin Campbell, a Grayson County lawyer; Charles Austin, Independence mayor; and Don Young, Grayson administrator, said they know Baldwin and they hope his purchase offer is confirmed by the court.
Howard Beck, attorney for the Nautilus creditors' committee, said his clients want the best transaction and are trying to keep open as many options as possible.
by CNB