Agway exploring sale of businesses to pay creditors

Chicago, April 21 - Agway Inc. said it is exploring the potential sale of each of its businesses and other opportunities that could result in greater value for its creditors.

Agway will look at the sale of Agway Energy Products; Animal Feed and Nutrition; Fresh Produce; and Agricultural Technologies. The investment banking firm Goldsmith-Agio-Helms has been retained by Agway Inc. and the official committee of unsecured creditors to assist in finding potential buyers.

The company will reach final decisions about its businesses by mid-summer, which will be incorporated into the Chapter 11 plan of reorganization, expected to be completed later this summer. The company has targeted December 2003 for its emergence from Chapter 11.

"The prospects for maximizing value from our businesses are very encouraging. I am convinced that each of our businesses will continue as ongoing business enterprises providing quality products and services to our customers and continued job opportunities for the thousands of Agway employees that serve our customers in hundreds of communities. These are valuable businesses," said Agway chief executive officer Michael R. Hopsicker in a news release.

He said Agway, a Syracuse, N.Y.-based agricultural company, has a cash surplus and does not anticipate any need to borrow against its current credit facility.

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