Pennfield Corp. files bankruptcy sale plan
Midstate-based startup company Carlisle Advisors proposes to pay $15.6 million, minus a number of “adjustments,” to buy bankrupt livestock feed company Pennfield Corp. and its subsidiary trucking company, court documents show.
Pennfield on Friday filed paperwork outlining proposed bidding procedures and the asset purchase agreement it arranged with Carlisle Advisors.
Carlisle Advisors will be a stalking horse bidder and is to receive a breakup fee of $468,000 if its deal does not go through.
According to the bid procedures, any would-be buyers must submit bids by 4 p.m. Nov. 6, and bids must exceed Carlisle Advisors' offer, plus the breakup fee, by at least 2 percent. If bids are received, an auction is to take place Nov. 9, the document says.
Otherwise, Carlisle Advisors will pay the $15.6 million, less adjustments reflecting various Pennfield liabilities.
As part of its bid, Carlisle Advisors has agreed to extend Pennfield a loan of $2 million, the documents say.
Lancaster County-based Pennfield filed for bankruptcy on Oct. 3. It said Carlisle Advisors planned to buy its assets and operations, which it would run via a subsidiary named Wellsource Nutrition.
Carlisle Advisors' managing partner is Ralph Briggs, chief operating officer of Maryland cattle feed company Novera Protein. Messages left for Briggs were not immediately returned.