Kaiser Group Holdings: Buying Alabama Aircraft Industries and Selling Bally Total Fitness?

August 24, 2011

Kaiser Group Holdings (OTC/Pink Sheets: KGHI.PK – $28 bid/$32 ask) has made an offer to acquire certain assets of bankrupt Alabama Aircraft Industries, Inc. (AAII) for approximately $500,000 and take over the operations. Alabama Aircraft Industries has requested approval from the court to sell the company’s assets.

Kaiser director Michael Tennenbaum formerly served on the Board of Directors for AAII. Mr. Tennenbaum is also a partner in Tennenbaum Capital Partners and a member in Tennenbaum & Co., LLC which according to an AAII proxy statement dated May 10, 2010, the two organizations owned approximately 38% of the outstanding shares. In addition, AAII owes $2.5 million on a note purchase agreement held by the Special Value Bond Fund, LLC which is managed by Tennenbaum Capital Partners.

In an unrelated matter, rumor has it current Kaiser holding Bally Total Fitness is in negotiations to be acquired by Gold’s Gym. Gold’s Gym is owned by the private equity firm TRT Holdings which is certainly believed to have the ability to make such an acquisition. A price of $270 million for Bally has been reported, but not substantiated. If Bally can get the rumored price, it would prove to be a very good return for Kaiser which would realize approximately $54 million for a total investment over the last two years of only $22.658 million.

Print Friendly

Previous post:

Next post: