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Polaroid sale can proceed, judge rules

Bloomberg News / May 5, 2009
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NEW YORK - Patriarch Partners LLC, whose bid for Polaroid Corp. was rejected by a bankruptcy judge, has ended its effort to overturn the $88 million sale of the photography firm after a US judge refused to block the deal during its appeal.

"Because the deal is expected to close as soon as today, we will not appeal further," Patriarch spokesman Taylor Griffin said yesterday. "Generally, once a deal closes, even a favorable appeal in court would not overturn the sale."

The move by New York-based Patriarch, a private-equity firm, follows US District Judge James Rosenbaum's ruling on Thursday in Minneapolis that putting the purchase on hold during appeal would threaten operations at Polaroid, which is spending its cash at a rate of $3 million a month. Polaroid on April 16 won US Bankruptcy Court approval to be sold to a joint venture of Hilco Consumer Capital LP of Toronto and Gordon Brothers Brands LLC of Boston.