Do Good Foods seeks court approval of bid procedures for assets

By Sarah Lizee

Olympia, Wash., June 23 – KDC Agribusiness LLC, which does business as Do Good Foods, is seeking approval of bid procedures for its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company said that even with access to its $30 million debtor-in-possession facility, its current financial condition will not allow for administration of the Chapter 11 case and marketing process for its assets for an extended period.

As such, the debtor and secured parties under the DIP facility have agreed to pursue a potential sale transaction on an expedited timeline.

The company is also seeking approval to designate a stalking horse bidder and provide up to 4.5% in bid protections.

Any competing bid must be for all of the debtors’ assets and must be paid in full in cash and exceed the sum of $35 million, cure costs of all assumed contracts, any transfer taxes resulting from the sale, unless the DIP secured parties have agreed otherwise, the amount of the remaining unpaid DIP obligations, the bid protections, if any, and, if a stalking horse bidder has been designated, the $2 million minimum overbid.

However, bidders can also propose an alternative transaction that provides higher or better terms, provided that the alternative transaction must, at a minimum, provide for the immediate cash repayment in full of the DIP obligations and the bid protections.

Under the proposed bid procedures, the bid deadline is 4 p.m. ET on Aug. 4, an auction is scheduled for Aug. 11, and a sale hearing is set for Aug. 16.

A hearing on the bid procedures is scheduled for July 20.

As previously reported, UMB Bank, NA is the DIP agent and the lenders are Nuveen Asset Management, LLC and AllianceBernstein LP funds and accounts.

KDC Agribusiness is a food waste recycling company based in Bedminster, N.J. The company filed bankruptcy on June 14 under Chapter 11 case number 23-10786.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.