ST. PAUL, Minn. — Polaroid’s decision to sell itself for $59.1 million to Patriarch Partners was rejected by a bankruptcy judge, who gave the private-equity firm and another interested buyer until today to make new offers.
U.S. Bankruptcy Judge Gregory Kishel in St. Paul on Monday threw out the results of last week’s auction, citing disagreement over the price and procedure among bidders and creditors, according to Polaroid’s lawyer, George Singer.
“Both offers are very unique and very different,” Singer, of Lindquist & Vennum PLLP in Minneapolis, said Monday. “Polaroid is supportive of whatever party maximizes value.”
The 72-year-old pioneer of instant-film photography, which sought court protection amid allegations of fraud by its owner, was told to notify the court of the new winning bid by April 8.
Polaroid’s decision last week to accept the bid by New York-based Patriarch, an investor in the Arizona Iced Tea brand and the mapmaker Rand McNally, triggered objections from creditors that claimed Polaroid’s global trademark rights were undervalued.
The other interested buyer, a joint venture between liquidation companies Hilco Merchant Resources LLC and Gordon Brothers Group LLC, argued that their $61.5 million offer should have been accepted.
