Allen Family Foods to be sold to Harim USA.; sale hearing Wednesday

By Jim Witters

Wilmington, Del., July 26 - Harim USA Ltd. emerged Monday as the high bidder for Allen Family Foods Inc., according to a Tuesday filing in the U.S. Bankruptcy Court for the District of Delaware.

Details of the proposed deal will be made public at a sale hearing, scheduled for 11 a.m. ET on July 27.

Harim USA Ltd. is an affiliate of South Korean poultry firm Hiram Holdings Co. Ltd.

Mountaire Farms affiliate Seaford Milling Co. had been the stalking horse bidder. Before the auction on July 25, Seaford had agreed to pay $30 million for the assets, plus an additional final inventory amount.

In a June motion by the debtor, the proposed sale to Seaford excluded 24 of the company's broiler growout farms and 3,437 acres of farmland, as well as other accounts receivable, insurance policies, unamortized loan costs, tax refunds and farm machinery and equipment.

However, Allen Family Foods said it will take bids for the "excluded assets" either as part of a separate sale or together with the other assets.

Allen Family Foods, a Seaford, Del., poultry producer, filed for bankruptcy on June 9. The Chapter 11 case number is 11-11764.

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