Judge Approves Seneca Foods $148M Bid for Allens
by January 9, 2014 9:19 am 79 views
An Arkansas bankruptcy judge on Tuesday approved Seneca Foods Corp.’s $148 million stalking horse bid to acquire the operating assets of frozen vegetable manufacturer Allens Inc. of Siloam Springs.
Allens, a national leader in canned and frozen vegetables, filed for Chapter 11 bankruptcy in late October and announced the agreement with New York-based Seneca in December.
As the stalking horse bidder, Seneca has the opportunity to match any other bids received.
Allens, according to a news release, is also seeking bidders for its frozen operations in Montezuma, Ga., and intends to sell these assets through the auction process.
Under the approved bidding procedures, interested parties must submit qualified bids to acquire Allens’ assets by 5 p.m. on Jan. 27.
If any bids are received other than Seneca’s, Allens will hold an auction on February 3. A final sale approval hearing will be held Feb. 10 and the closing is anticipated to occur shortly thereafter.
Allens noted it continues to operate the business in the ordinary course, focusing on its core canned vegetable markets. According to a news release, Allens employees have received notification that their jobs may be terminated as a result of the sale process, though the company expects the majority of personnel will be offered continued employment by the winning bidder.
“The court’s approval of the bidding procedures and bid protections is another important milestone in the process that is intended to maximize the value of Allens,” said Jonathan Hickman, chief restructuring officer of Allens. “We are encouraged by the continued interest Allens has received for our canning operations and other assets and we are committed to an outcome that provides the most value for our creditors.”