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Bankruptcy Recovery for Unsecured Creditors of Livestock Feed Producer

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Bankruptcy Recovery for Unsecured Creditors of Livestock Feed Producer

The Situation

The Company is a producer of feed for cows, horses, and other commercial livestock. Bankruptcy was filed in October 2012. $210 million annual sales. $10 million debt. 

  • All three manufacturing facilities are losing money.
  • Full marketing efforts found three buyers for all facilities.
  • The company is willing to purchase assets at the 363 sale.
  • Stalking Horse was the highest bidder, but its financial capability was questionable.
  • Held a hearing on Stalking Horse debtor financing.

How We Advised

  • Reached out to other bidders to gauge their interest.
  • Sold all assets in the 363 sale below Stalking Horse.
  • Kept 10% deposit by Stalking Horse bidder.
  • The secured lender was paid in full.
  • 503(b)(9) paid from a carve-out from the secured creditors.
  • Negotiated a $250K carve-out for unsecured creditors.
  • Commenced and settled litigation against officers.
  • Commence litigation against BNO for past facility sales.
  • Commence litigation against Stalking Horse bidder.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Bankruptcy Advisory 
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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