After backing out of a deal to buy all of the facilities of bankrupt cooperative NORPAC, the Oregon Potato Company now offers to buy only the Quincy, Washington, plant (shown above).
After backing out of an original offer entirely, the Oregon Potato Company now offers to purchase a single NORPAC facility
US Farmer cooperative NORPAC Foods filed a motion in bankruptcy court Friday afternoon to sell its Quincy, Washington, plant for USD 93.5 million to Oregon Potato Company. However, no new sale has been proposed on the company's plants in Salem, Brooks and Stayton.
When the Oregon-based farmer cooperative filed for Chapter 11 bankruptcy protection in August, it stated it intended to sell the majority of assets of the company to Oregon Potato Company for USD 155 million.
But the Frank Tiegs-owned business backed out of the potential deal October 18, citing environmental concerns at the Quincy and Stayton facilities, as well as regulatory issues.
The proposed purchase price includes $21.5 million for the Washington plant, certain machinery, equipment, assigned contracts, intellectual property assets and packaging material and approximately $72 million in estimated inventory.
The filing says competing bids must be submitted by December 9 and must exceed Oregon Potato Company’s $93.5 million offer by at least USD 1 million.
NORPAC owes over $165 million to more than 5,000 creditors and is valued at $315 million, according to bankruptcy filings.
The filing states:
NORPAC has filed notifications with Oregon it could lay off nearly 1,400 workers at its Stayton, Salem and Brooks locations, but didn’t file a similar notification with Washington about the Quincy facility.
The filings with the state indicate the Stayton processing plant, which is the company’s original location, will close November 27 and the Salem and Brooks facilities will close Jan. 12, 2020.
NORPAC attorney Al Kennedy stated in court Tuesday the company is entertaining offers from four suitors to purchase parts of its operation.
When the Oregon-based farmer cooperative filed for Chapter 11 bankruptcy protection in August, it stated it intended to sell the majority of assets of the company to Oregon Potato Company for USD 155 million.
But the Frank Tiegs-owned business backed out of the potential deal October 18, citing environmental concerns at the Quincy and Stayton facilities, as well as regulatory issues.
The proposed purchase price includes $21.5 million for the Washington plant, certain machinery, equipment, assigned contracts, intellectual property assets and packaging material and approximately $72 million in estimated inventory.
The filing says competing bids must be submitted by December 9 and must exceed Oregon Potato Company’s $93.5 million offer by at least USD 1 million.
NORPAC owes over $165 million to more than 5,000 creditors and is valued at $315 million, according to bankruptcy filings.
The filing states:
“Debtors and buyer desires a closing as soon as possible.”A hearing on the motion has been scheduled for 1:30 p.m. December 10 at the U.S. Bankruptcy Court in Portland.
“It is in the best interest of the Debtor and the estate to close the sale as soon as possible.”
NORPAC has filed notifications with Oregon it could lay off nearly 1,400 workers at its Stayton, Salem and Brooks locations, but didn’t file a similar notification with Washington about the Quincy facility.
The filings with the state indicate the Stayton processing plant, which is the company’s original location, will close November 27 and the Salem and Brooks facilities will close Jan. 12, 2020.
NORPAC attorney Al Kennedy stated in court Tuesday the company is entertaining offers from four suitors to purchase parts of its operation.
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