Wornick names Viren high bidder in equity sale auction

By Jennifer Lanning Drey

Portland, Ore., May 22 - Wornick Co. named Viren Acquisition Corp. as the high bidder at the auction for the equity of the reorganized company, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

As previously reported, Viren is an entity formed by members of a group of Wornick's bondholders.

Viren's stalking horse bid for the equity was $85 million.

Under the terms of Wornick's plan of reorganization, Viren's high bid also means Wornick's pre-bankruptcy lender will be given the exclusive right to provide exit financing to reorganized Wornick in lieu of a cash payment.

A hearing on the auction results is scheduled to coincide with the company's plan confirmation hearing on 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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