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.

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.