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Indiana Limestone wins court approval for auction

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The owner of Indiana Limestone Co. has received court approval to hold an April auction to see whether there are any better offers for virtually all its assets than the $26 million bid by lender Indiana Commercial Finance LLC.

Indiana Limestone notified the state in late February that it planned to close operations in Bloomington and nearby Oolitic in late April and early May, putting 166 employees out of work.

U.S. Bankruptcy Judge Christopher Sontchi on Thursday granted Victor Oolitic Stone Co., which owns the company with roots dating back more than 110 years, approval of guidelines governing the sale process, according to court documents filed March 13 in Wilmington, Del. The company also obtained approval to borrow as much as $3.5 million from Indiana Finance.

Indiana Finance will serve as the stalking-horse, or lead, bidder at an April 14 auction, setting the floor for other potential buyers to beat, according to court papers. The lender is making a credit bid, offering to forgive debt, instead of putting up cash.

Bids to compete in the auction must be submitted by April 11. The company will seek court approval to sell the assets to the auction winner at an April 16 hearing.
Indiana Limestone owns 10 quarries spanning more than 4,000 acres and containing more than 100 years of limestone reserves, making it the “largest dimensional Indiana limestone quarries and fabricators in North America,” according to court documents.

The company bought the original Victor Oolitic Stone, founded in 1897, in a 2009 bankruptcy sale, according to court filings. The company then bought Indiana Limestone, which was formed in 1924 through the merger of 24 corporations, in 2010 to create the company as it is now.

Indiana Limestone’s products have been used to construct some of the most famous works of architecture in the U.S., including the Empire State Building, the Pentagon and 35 of the 50 state capitol buildings, according to its website.

Victor Oolitic filed for bankruptcy protection Feb. 17 listing more than $50 million in assets and debt, according to Chapter 11 court documents.
 

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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