A court-supervised sale process for Allens, Inc., with an operation just outside of Turkey, has now been approved for forward movement by the United States Bankruptcy Court for the Western District of Arkansas.
That news came via a press release issued by Allens Thursday afternoon.
As previously announced, the release states, Allens has entered into a “stalking horse asset purchase agreement under which Seneca Foods Corporation” intends to acquire much, if not all, of the company’s canning operations in a court-supervised process.
The agreement sets the floor for an auction designed to acquire the best offer for the company.
Allens, the release noted, is also seeking bidders for its frozen operations in Montezuma, Ga. and intends to sell those assets through the auction process.
“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.”
Officials with Allens, which employs some 300 people locally, has noted that it continues to operate the business in the “ordinary course, focusing on its core canned vegetable market.” Although Allens employees have received notification that their jobs may be terminated as a result of the sale, the company expects that the majority of personnel will be offered continued employment by the winning bidder, the release notes.
Qualified bids to acquire the company’s assets are being taken through 5 p.m. Jan. 27.
“In the event qualified bids in addition to the stalking horse bid (by Seneca) are received, Allens will hold an auction on Feb. 3.
The court has scheduled a final sale approval hearing for Feb. 10.
The company, a national leader in canned and frozen vegetables since 1926, filed voluntary Chapter 11 on Oct. 28. It is a family owned and operated company with manufacturing plants throughout the midwest, midsouth and southeast.
Additional information can be found at www.allens-restructuring.com.