Cagle's seeks to sell assets at bankruptcy auction
JCG Foods makes offer of $72.3 million
Poultry producer Cagle's Inc. is seeking court permission to sell nearly all its assets at a bankruptcy auction after accepting a bid of $72.3 million from JCG Foods LLC, an affiliate of Koch Foods Inc.
Cagle’s wants to hold an auction on May 10 followed by a May 11 hearing to seek approval of the sale. Rival bidders would have until May 4 to submit offers under the proposed timetable. “It’s a nice strategic fit,” said Joe Grendys, owner of Koch Foods, and JCG Foods. The deal would give Grendys a broader customer base and more supply, he said. Cagle’s assets include two processing plants, a feed mill and a hatchery.
JCG Foods agreed to pay $37 million plus the value of inventory and accounts receivables, which stood at about $43 million as of January 28, and minus post-bankruptcy payables and accrued expenses that totaled about $7.7 million, according to court documents. About $55 million would be paid in cash and the remainder would be paid with a promissory note guaranteed by Grendys.