Trustee Sets Bidding Procedures and Auction Date for Grand Eagle's Assets

    RICHFIELD, Ohio--Feb. 11, 2002--On February 5, 2002, Glenn C. Pollack, Chapter 11 Trustee for Grand Eagle, Inc. and its five (5) debtor subsidiaries (collectively, "Grand Eagle"), set forth, and the United States Bankruptcy Court approved, Competitive Bidding Procedures (the "Sale Procedures") with respect to the auction sales of substantially all Grand Eagle's operating assets (the "Assets").
    The Sale Procedures specify the manner in which interested parties may bid on the Assets. The Trustee expects to sell the Assets in at least three separate auction processes primarily divided along the lines of its three business units, Motors, Breakers and Transformers. Grand Eagle's Chapter 11 bankruptcy cases are pending in the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division, Akron, Ohio.
    Glenn C. Pollack and his financial advisors, Candlewood Partners, LLC, have secured a bid for those of the Assets comprising the Transformer business unit from S.D. Myers, Inc. The Trustee has not secured bids for the other Assets. Brown, Gibbons, Lang & Company Securities, Inc. has acted as sales agent for the Trustee under these Sales Procedures.
    "I am excited about the interest that has been shown in the assets of Grand Eagle and especially as to the letter of intent that has been executed with respect to the Transformer business. Based on this interest, I expect multiple parties will bid actively on the assets at the auction," said Glenn C. Pollack, Trustee for Grand Eagle. "This type of activity should allow us to preserve jobs and maximize the value of the assets of Grand Eagle."
    Under the Sales Procedures, bids from interested parties must be submitted to the Trustee no later than 5:00 p.m. EST on Friday, February 22, 2002. In the event the Trustee receives multiple bids from Qualified Bidders on the same Assets, an auction will be held on Monday, February 25, 2002 beginning at 10:00 a.m. EST at the office of counsel to the Trustee, Benesch, Friedlander, Coplan & Aronoff LLP, 2300 BP Tower, 200 Public Square, Cleveland, Ohio 44114. The auction will remain open until the later of 8:00 p.m. EST or until the Trustee determines that he has received the highest and best bid for the assets that are being auctioned.
    Grand Eagle, Inc. (a privately held company) is North America's largest independent motor, switchgear, and transformer services provider. Based in Richfield, Ohio, the company provides engineered upgrades, repair, remanufacturing and maintenance services for industrial, utility and commercial markets. Employing approximately 900 people in three business units dedicated to the service of major brands of electrical equipment, Grand Eagle has over 35 locations in 22 states across the nation. As of October 26, 2001, Grand Eagle reported approximately $131 million in total assets and $82 million in total liabilities, including approximately $52 million of senior indebtedness and $11 million of trade indebtedness. Credit Agricole Indosuez leads Grand Eagle's senior lending group.
    For more information, please contact either Sherrill Speers of Grand Eagle, Inc. at (330) 659-7554 (sspeers@grandeagle.com) or Michael Fixler of Candlewood Partners, LLC at (440) 247-2800 (mfixler@candlewoodpartners.com). In addition, copies of the Sale Notices, containing the Sales Procedures, may be requested by calling or sending an email to Michael Fixler of Candlewood Partners, LLC and may be available online at www.grandeagle.com.