MorrisAnderson Assisting Unsecureds to Get Fair Bankruptcy Recovery


Annual Sales


in Debt

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.