Capstone Partners’ Financial Advisory Services (FAS) team advised on the § 363 sale of Lightning Technologies, a portfolio company of Grow Michigan, a subordinated-debt fund backed by the State of Michigan. The FAS team was initially retained to assist the secured lender in an Article 9 foreclosure sale and was subsequently appointed by the Bankruptcy Trustee when the case was converted to Chapter 7.
Lightning Technologies manufactures pallets with an indestructible coating that allows them to be sterilized for use in shipping sensitive items such as food, pharmaceuticals, and electronics. Additionally, the pallets contain RFID sensors, which are able to transmit important logistical data including location, temperature, and humidity.
“We were pleased to help the Trustee and creditors in the matter to a satisfactory conclusion,” said Managing Director Scott Eisenberg, who led the Capstone team. “This type of transaction can be hard for all the parties involved and it can be challenging to define ‘success’ in this type of process, so to reach a conclusion like we did with a satisfactory purchase price and a buyer who is interested in preserving the unique technology developed by the business, definitely qualifies for that distinction.”
The buyer, Palltronics, is an investment group consisting of some of the original shareholders of Lighting Technologies.