MorrisAnderson Assisting Unsecureds to Get Fair Bankruptcy Recovery
Pennfield Corporation, York Pennsylvania
The Company is a producer of feed for cows, horses and other commercial livestock. Bankruptcy filed October 2012. $210 million annual sales. $10 million debt.
- 3 manufacturing facilities; all losing money.
- Full marketing efforts found three buyers for all facilities.
- Company willing to purchase assets at 363 sale.
- Stalking Horse was the highest bidder. They had questionable financial capability.
- Held hearing on Stalking Horse-debtor financing.
- Reached out to other bidders for interest.
- Sold all assets in 363 sale. Came in below Stalking Horse.
- Kept 10% deposit by Stalking Horse bidder.
- Results; all assets sold at 363 sale.
- Secured lender paid in full.
- 503(b)(9) paid from a carve-out from the secure creditors.
- Unsecure creditors negotiated $250K carve-out for unsecured creditors.
- Commenced and settled litigation against officers.
- Commence litigation against BNO for past facility sales.
- Commence litigation against Stalking Horse bidder.