Allens Canning may be finding itself under a new umbrella soon, as the company is moving towards the final approval for the new highest bidder. Allens Canning has reached an agreement with Sager Creek Acquisition Corp. to acquire the majority of the company, according to a prepared release that was dated Friday and issued yesterday.
The auction for Allens was held last week, and an investor group won out over the competition. The investor group, Sager Creek Acquisition Corp., is comprised of two companies, Sankaty Advisors, LLC and GB Credit Partners.
Final court approval of the sale was scheduled for Tuesday in the U.S. Bankruptcy Court for the Western District of Arkansas. It is expected that the closing on the Allens sale will happen as quickly as possible; however, it is all contingent on certain conditions such as the court approval.
“As we had anticipated, the auction process for Allens’ assets was robust and competitive,” stated Jonathan Hickman, Chief Restructuring Officer of Allens in the release. “We are pleased with the result of the auction and believe that the selected bid maximizes the value of Allens’ assets for the benefit of our creditors. Sankaty and GB Credit Partners have been investors in Allens for some time and understand the business well. We believe their winning bid demonstrates continued confidence in Allens’ brands and its people, as well as its future prospects.”
Sankaty is described in the release as being “one of the world’s leading private managers of fixed income and credit instruments” with a selection of global investments and securities.
GB Credit Partners is an part of Gordon Brother’s Group and it “originates, structures, and invests in private market debt” with a broad spectrum of investments.
Allens has been in the frozen and canned vegetable business since 1926 and it back at the end of October last year it filed for Chapter 11. The company has plants all over the country.
Form more information see www.allens-restructuring.com.
Emily M. Hobbs can be reached at 910-592-8137 ext. 122 or via email at firstname.lastname@example.org.