Compliance interpretation of request for pl'emerger clearance: Imminent insolvency

No. 180. Compliance interpretation of request for pl'emerger clearance: Imminent insolvency.

The Conmlission issued all opinion September 24, 1965 , in COllllection with a request for advice as to whether a proposed merger, if consummated, would be in violation of an outsta.nc1ing Commission order prohibiting the acquiring company from making certain acquisitions for a designated period of time without prior Commission approval. A small food products manufacturer applied lor olearanee of its proposed acquisition by larger company unde-r Commission order and which was much more extensively engaged in the same product line. 1302 FEDERAL TRADE CO::YIMISSION DECISIONS The requesting company "Was experiencing a decline in annual profits to the point of insolvency. It was reported that refinancing was not available and the smaller company was not, for a number of reasons, a viable concern in the context of the particular market. Exhaustive c:lIorts to locate another purchaser had been unsuccessful. On the basis of available information, the Commission gave its approval to the p:roposed acquisition. (File No. D-6651 , released Feb. 13, 1968. ) (Opinion issued under authority of Section 3. 61 (c) of the COInmission s Rules of Practice (1967).