Hog company AgFeed USA has filed for Chapter 11 bankruptcy protection, citing a dispute with Hormel Foods.
In a filing with the bankruptcy court in Wilmington, Delaware, the company said a disagreement with Hormel, which lead to an arbitration process, forced it to default on one of its loan agreements.
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The company listed assets of around US$500m and debts totalling approximately $100m.
AgFeed USA’s parent company, AgFeed Industries, suggested that it plans to push ahead with a sale of the business. The company said it has already received an offer valuing the hog and feed group at $79m and plans to push ahead with an auction process to test for better offers.
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