| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for AgFeed USA, LLC > News item |
AgFeed seeks OK of bid procedures for $79 million sale to Maschhoffs
By Jim Witters
Wilmington, Del., July 17 - AgFeed USA, LLC is seeking approval of bidding procedures for the proposed sale of substantially all of its assets to stalking-horse bidder Maschhoffs, LLC for $79 million, according to a July 17 filing with the U.S. Bankruptcy Court for the District of Delaware.
The company is seeking competing offers for the assets, which include hog farms in Iowa, North Carolina and Colorado. The purchase price is subject to working capital adjustments.
Maschhoffs has agreed to offer employment to each of the active farm employees on the sale closing date.
AgFeed also is separately marketing its other assets, which include sow farm operations in Oklahoma, the assets of parent AgFeed Industries and its Chinese subsidiaries.
Proposed procedures
Under the proposed bidding procedures
• Competing bids are due by 4 p.m. ET on Aug. 21;
• Bids must exceed by $250,000 the sum of the stalking-horse bid, the breakup fee and the expense reimbursement;
• Bidders must provide a $7.9 million cash deposit;
• An auction, if needed, would be on Aug. 26;
• Bidding increments at the auction would be $250,000;
• If Maschhoffs is not the successful bidder at auction, it will be entitled to a breakup fee of $2.37 million and reimbursement of expenses up to $790,000; and
• The sale must close on or before Aug. 31.
No sale hearing date was included in the proposed bid procedures motion.
A hearing on the bidding procedures is scheduled for 9 a.m. ET on Aug. 1.
AgFeed USA, an Ames, Iowa-based producer of animal feed, filed for bankruptcy on July 15. Its Chapter 11 case number is 13-11761.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.