PAN AM SUBSIDIARY GOES ON THE AUCTION BLOCK

PAN AM SUBSIDIARY GOES ON THE AUCTION BLOCK

A profitable subsidiary of Pan American World Airways went on the auctioneer's block Wednesday as part of Pan Am Corp.'s Chapter 11 bankruptcy.

The entire inventory of Allmat International Inc., valued at more than $9 million, will be sold off over three days by the court-appointed auction firm, Jackson Hecht Associates Inc.Pan Am ceased operations in December, forced to close after a deal with onetime partner Delta Air Lines Inc. fell through.

Delta quit providing financing to a slimmed-down Pan Am, saying it could see no end to Pan Am's losses.

"Allmat was a marketeer for surplus inventory for Pan Am," said Abbot Jackson, an auctioneer, as he surveyed property ranging from toilet seat covers to navigation systems.

"It's not what we'd consider prime inventory. It was all used parts."

Allmat employees had tried to save their company with two different buy- out offers of $2.5 million but never received a response from the creditors' committee handling Pan Am's bankruptcy, said Charles Schaffner, senior director of operations and administration for Allmat.

"We were profitable, and we were trying to minimize the cost of an auction," Mr. Schaffner said. "They apparently thought they would get more money through the auction."

In 1991, Allmat International's pretax profit exceeded $12 million, and $5 million was transferred to Pan Am, Mr. Schaffner said.

A bid of $500,000 was tendered Wednesday by International Aircraft Support Group, Mr. Schaffner said. If the auction doesn't realize at least that much, then the entire stock will go to the highest single bidder.