Agriprocessors' trustee sets bid procedures for proposed $40 million sale of all assets

By Jennifer Lanning Drey

Portland, Ore., Jan. 26 - Agriprocessors, Inc.'s Chapter 11 trustee requested court approval of the bidding procedures related to the proposed $40 million sale of substantially all of the company's assets, according to a Sunday filing with the U.S. Bankruptcy Court for the Northern District of Iowa.

Soglowek Nahariya Ltd. is the stalking horse bidder.

Competing bids are due by 3 p.m. ET on March 18 and must include a 10% deposit.

Initial overbids must be for at least $100,000 more than the stalking horse bid plus the amount of the break-up fee.

Subsequent overbids must be for at least $100,000 more than the prior bid.

Agriprocessors will pay a $2 million break-up fee and reimburse $500,000 of Soglowek Nahariya's expenses if it is not the high bidder.

The auction and related hearings have not yet been scheduled.

The trustee said he has had discussions with several potential buyers of the assets and believes Soglowek Nahariya's offer is fair and reasonable.

Agriprocessors, a Potsville, Iowa-based kosher meat and poultry packer and food processor, filed for bankruptcy on Nov. 4 in the U.S. Bankruptcy Court for the Eastern District of New York. Its case was later transferred to Northern Iowa. Its Chapter 11 case number is 08-02751.

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