Open the deadline for submission of offers for the purchase of Tubos Reunion

The deadline for submission of offers for the purchase of Tubos Reunion, which is in competition with creditors, is now open, as reported by the company on Monday.

The purchase of Reunited Tubes will be conducted by a court in Vitoria-Gasteiz, which today notified the Spanish Securities and Exchange Commission (CNMV) of the rules governing the procurement process.

In analysing the tenders submitted, preference shall be given to those who intend to purchase the entire business, without prejudice to the interest of potential buyers in a production unit, as well as the maintenance of employment and working conditions.

The judge has set out the steps to be taken and the time limits for the proceedings:

• First, potential buyers will have to send an email to the court.
• Upon receipt of the message, they shall have a maximum of 5 working days to send a confidentiality letter expressing interest in the group.
• A further period of 30 working days shall then be set for those who submit the letter to verify the status of the company and make the so-called "contact visit": access to their accounts (due diligence), visit the factories and meet with the management and trade unions.
• If they decide to continue, they must submit a final offer.

The Administrator in charge of the creditor competition of Tubos Reunion shall select a maximum of 5 tenders, taking into account the above criteria. 

Potential buyers selected will be eligible to participate in a question-answer process ("Q & A") before submitting their final bid.

The bidding administrator shallthen qualify, evaluate and graduate the bids. 

Once this has been done, a consultation phase will be opened to reach agreements between the company, the insolvency administration, workers' representatives and potential buyers to comply with the terms of the offer. 

If there is no agreement within the prescribed time limit, the bidder may withdraw his offer, in which case the next prospective buyer determined by the judge shall initiate the consultation phase.

If an agreement is reached, the Administrator shall communicate the selected offer before the Court authorizes the sale.