Aetna Bearing restructuring, asset sale set

Aetna Bearing Company (USA), restructuring through a sale of the assets as an operating entity, will be sold via a prearranged auction process in Chicago on April 10, 2003. Aetna is part of the Iroquois Technologies Group, the precision components manufacturing group division of holding company GWB (USA) Inc. GWB, in turn, is a subsidiary of Halifax, England-based Gartland Whalley and Barker plc. GWB USA acquires troubled small to mid-size manufacturing companies which it believes are turnaround prospects. GWB has indicated it eventually intends to spin off Iroquois as a publicly-traded company. Founded in 1917, Aetna is one of the oldest continuously operating bearing manufacturers in the United States. The company produces ball thrust bearings, clutch release bearings, belt idler and chain sprocket idler bearings. The company is especially well known for its line of automotive and truck clutch release bearings; at one time, it dominated OEM and aftermarket sales in North America. Aetna still produces over 550 different items. GWB acquired Aetna from Pat Balson in 1999 for USD $7.5 million, plus $900,000 in performance-based payments. That year, Aetna's sales were approximately $13 million, with net income of $1.3 million. At the same time as the Aetna acquisition, GWB also acquired Networks Electronic Corp., based in Chatsworth, California for $12.6 million. Founded in 1954, NEC's U.S. Bearing division manufactures precision rod end bearings, spherical bearings and linkage assemblies for aerospace applications. Also in the same division with Aetna is Loves Park, Illinois-based Modern Metal Products Company, a producer of high quality stampings and fineblanking. The sale and repurchase apparently will allow Aetna to effectively restructure the business as a going concern, relocate, slash overhead and refocus on manufacturing and production. The public notification: ¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡Auction ASSIGNEE'S AUCTION OF CERTAIN ASSETS OF AETNA BEARING COMPANY Sale of Assets: On April 10, 2003 at 10:00 a.m. at the offices of Adelman, Gettleman, Merens, Berish & Carter, Ltd., 53 W. Jackson Blvd., Suite 1050, Chicago, Illinois, David Abrams, as Assignee for the Benefit of Creditors of Aetna Bering Company (the "Company"), intends to sell his rights, title and interest, if any, in and to substantially all of the tangible and intangible assets of the Company, consisting of, among other things, accounts receivable, general intangibles (hereinafter collectively, the "Assets"). Terms and Conditions of Sale: The Assets will be offered as a single lot on an "AS IS, WHERE IS" basis. The Assignee has received an irrevocable written offer (the "Offer") for the Assets in the amount of $5,035,000 plus adjustments at closing. To qualify, competing bids must be in an amount of at least $5,135,000 plus adjustments at closing. If any qualified competing bids are received, bidding will continue thereafter in an auction-like process, with minimum bid increments of $25,000. All bidders must possess $100,000 in cash, certified or cashier's check at the commencement of the sale to be considered a qualifying bidder, and such funds must be paid to the Assignee by the successful bidder when the successful bid is accepted. The balance of the purchase price must be paid by the successful party by cashier's or certified check at closing, which will occur no later than April 11, 2003. If a successful bidder fails to pay the balance of his or her successful bid, the initial deposit will be forfeited and the Assets may, at the Assignee's option, be sold to the next highest bidder without prejudice to or waiver of the Assignee's rights and remedies against the defaulting high bidder. THE ASSETS WHICH ARE TO BE SOLD ARE BEING SOLD "AS IS, WHERE IS" AND WITH NO EXPRESS OR IMPLIED WARRANTIES, REPRESENTATIONS, STATEMENTS OR CONDITIONS OF ANY KIND, INCLUDING BUT NO LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. FOR FURTHER INFORMATION CONCERNING THE ASSETS, OR TO ARRANGE FOR AN INSPECTION OF THE ASSETS OR THE OFFER, CONTACT: David Abrams David Stafford Abrams & Jossel Consulting Inc. 39 S. LaSalle St., Ste. 1410 Chicago, IL 60603 312-629-8585 Chad H. Gettleman, Esq. Adelman, Gettleman, Merens Berish, & Carter Ltd. 53 W. Jackson Blvd., Ste. 1050 Chicago, IL 60604 Attorney for the Assignee 312-435-1050 Chester Foster, Esq. Foster & Kallen 3825 W. 192nd St. Homewood, IL 60430 Attorney for the Assignor 708-799-6300