Posted 2/4/2014 02:20 pm
Updated 7 months ago
A newly formed entity called Sager Creek Acquisition Corp. was the high bidder Monday in an auction to buy Allens Inc. of Siloam Springs, according to a source close to the sale.
The corporation, formed last month, bid $160 million for the 87-year-old family-owned vegetable processor and food-service provider, which filed Chapter 11 bankruptcy in October.
Sager Creek was incorporated in Delaware on Jan. 8 — a day after U.S. Bankruptcy Judge Ben Barry ruled Allens could be sold at auction on Monday in New York.
It is unclear from the filing with the Delaware's Division of Corporations who owns Sager Creek. The company was expected to be declared the winning bidder at 2 p.m. Tuesday, but the meeting was moved to late this afternoon.
The sale requires Barry's approval. The court is scheduled to review the deal on Monday.
If the judge approves Sager Creek’s bid, Allens will have to pay Seneca Foods Corp. of Marion, N.Y., a $4.5 million break-up fee.
In December, Seneca emerged as the "stalking-horse" bidder in the auction, pledging to bid $148 million to acquire "substantially all the operating assets" of Allens.
In bankruptcy filings, Allens cited nearly $290 million in debt and $295 million in assets.