All American Semiconductor, Inc. (Pink Sheets: SEMI.PK), a distributor of semiconductors and other electronic components, received U.S. Bankruptcy Court approval on June 5, 2007 to proceed with the sale of substantially all of its assets to a two-party consortium of Rock River Capital LLC and the Company’s senior secured lenders for which Harris N.A. acts as agent. An order formally approving the sale is expected to be entered today.

The sale is expected to close today. The aggregate purchase price from the auction is $15.2 million and will be paid to Harris N.A. as agent for the senior secured lenders in the form of a reduction in the senior secured lenders’ secured claim.

As previously disclosed in a June 4, 2007 press release, Rock River Capital was the successful bidder for substantially all of the Company’s operating assets and is expected to continue to operate the acquired assets as a going concern business utilizing All American’s 42 years of experience and service to the industry.

Rock River did not purchase the Company’s commercial tort claims, avoidance actions, accounts receivable and certain other miscellaneous assets. The Company’s senior secured lenders were the successful bidders for the Company’s accounts receivable. None of the Company’s commercial tort claims or avoidance actions was sold.

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Posted: 06|7|07 at 9:25 am. Filed under: News.