Vinmar Gains Approval to Buy Bankrupt NanoMech for $8 Million

Vinmar International, a chemicals distributor, won court approval to buy bankrupt lubricant maker NanoMech Inc. for $8 million, even as a tussle over federal contracts could still quash the deal.

The deal, approved by the Delaware bankruptcy court July 23, excludes NanoMech’s contract with the Defense Department to produce a mosquito repellent. The Pentagon had objected to the deal, arguing that bankrupt companies’ government contracts can’t be transferred in an acquisition without government approval.

The deal, which was struck through a Vinmar subsidiary, also excludes any claims against NanoMech’s former or current officers and directors. The companies removed them after ...