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