Sabre bankruptcy called 'bad faith' move

Feb. 23, 2011 at 6:37 PM
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NASHVILLE, Feb. 23 (UPI) -- A Mississippi bank has petitioned a bankruptcy court in Tennessee to free up Sabre Defense Industries for sale, court papers show.

The (Nashville) Tennessean reported Wednesday Cadence Bank, owed $1.9 million by Sabre, has posted armed guards outside its closed plant in Nashville to ensure no assets are removed from the site.

Cadence also claims Sabre's bankruptcy protection was filed in "bad faith" and the shuttered plant would fetch a higher price if it were sold sooner rather than later.

The bank says it has a buyer in the wings, Manroy USA of Scottsboro, Ala., which has already provided a down payment for the business.

Sabre's bankruptcy attorney, Elliott Jones, said the deal with Manroy failed to include an "overbid procedure" that would allow a higher bidder to purchase Sabre. "That's the only way to get the most out of assets," he said, adding, "I'm not sure that the attempt to get the highest price for the assets can ever be considered bad faith."

Sabre's owner, Guy Savage, who also runs an arms plant in Britain, is in Britain and temporarily out of reach of U.S. prosecutors, who are pursuing a case against him for illegal arms dealing.

Savage and four company executives -- Charles Shearon, Elmer Hill, Michael Curlett and Arnold See Jr. -- are facing charges of conspiracy, wire and mail fraud, and illegally importing and exporting gun components, the newspaper said.

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