Wornick sets bid procedures for alternate investment or sale proposals

By Caroline Salls

Pittsburgh, March 18 - Wornick Co. received court approval of its procedures for consideration of alternate investment or sale proposals, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

Under the company's proposed restructuring, Viren Acquisition Corp., a new entity formed by members of a group of Wornick's bondholders, will purchase the equity of the reorganized company, subject to a court-approved auction process.

If Viren is not the high bidder for the equity, Wornick will pay it a $1.25 million break-up fee.

In order to participate at the auction, competing bids must be for at least $91 million. Viren's stalking horse bid is $85 million.

Subsequent bids at auction must be for at least $500,000 more than the previous bid.

Bids are due May 16.

The auction will be held May 21. If the high bid is for a sale transaction, the sale hearing will be held May 22. If the high bid is for an equity sale or the sale hearing is not held by May 21, the sale hearing will be held June 25.

Wornick, a Cincinnati-based food processing and packaging company, made a pre-packaged bankruptcy filing on Feb. 14. Its Chapter 11 case number is 08-10654.

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