Pennfield Corp.: Buyer Wellsource defaulted on purchase
The company that promised to buy Pennfield Corp. has failed to pay the purchase price, the bankrupt Lancaster County animal feed supplier said Wednesday.
Pennfield said it has issued a default notice to Wellsource Nutrition, saying the latter company also failed to transfer the $2 million in debtor-in-possession financing authorized by the bankruptcy court.
“Pennfield intends to pursue Wellsource, its officers, directors and members for all damages arising from their defaults,” the company said in a statement.
The company is evaluating other options, “particularly with other companies that have already expressed a strong interest in our business,” the statement quoted Pennfield President Arnold Sumner as saying.
Pennfield filed for bankruptcy in October and said at that time it planned to sell its business operations and assets to Wellsource. The base price was to be $15.6 million, minus a number of adjustments, according to subsequent court documents.