Townsends Receives $12 Million Financing, Headed To Auction
by January 30, 2011 7:00 pm 54 views
It was a far cry from what they wanted.
In late December, Talk Business reported on the Chapter 11 bankruptcy filing of Townsends, Inc. and four of its subsidiaries. Townsends is a family-owned, vertically integrated poultry processer with operations in multiple states, including Arkansas around the Batesville area. Townsends works with a number of farmers across northeast Arkansas.
During its December bankruptcy announcement, the company said it was exploring its strategic options and seeking $52 million in debtor-in-possession financing to keep operations alive.
On Friday, Townsends received final approval from the bankruptcy court for a $12 million debtor-in-possession financing facility.
Townsends also received approval for bid procedures for an auction process to sell the company, in whole or in part. The process calls for bids by February 14, 2011, with the auction to follow on February 15. A hearing to consider approval of the sale is currently scheduled to be held on February 17.
“We are extremely gratified that our employees, customers and suppliers have shown tremendous support during this difficult time. After carefully considering the company’s alternatives, the company’s management and its board of directors determined that a sale of all or part of the company’s assets would provide the opportunity for the best outcome for all of our stakeholders,” said Townsends CEO Frederick B. Beilstein III.
“Multiple bidders have expressed interest in acquiring the company. The company’s management and financial and legal advisors are working closely with interested bidders as we approach the anticipated February 15th auction and will continue to work with a successful bidder(s) to limit any disruption in operations during the transition process,” he added.