Hog production company AgFeed Industries, Inc. filed for Chapter 11 bankruptcy protection on Monday.
The Wall Street Journal reports Illinois-based pork producer The Maschhoffs has agreed to buy most of AgFeed’s U.S. assets for $79 million. This offer is subject to court approval and will be tested in a court-supervised auction. See, “Hog Producer AgFeed Seeks Chapter 11 Bankruptcy Protection.”
A dispute with Hormel Food Corp was cited in leading to default on its debt, according to Bloomberg.
“A sale of all or substantially all of the assets of AgFeed USA” is the best way to reorganize, and the company already has an offer for $79 million, Chief Restructuring Officer Keith Maib said in court papers.
In the petition filed in Wilmington, Del., the company listed as much as $500 million assets with debt as high as $100 million. Read more from Bloomberg here.
AgFeed is also looking for a buyer for its Chinese units, not included in the U.S. bankruptcy case.