An Arkansas-based food processor has filed paperwork asking to be allowed to reorganize its debts under a Chapter 11 bankruptcy. With this type of filing, a company is allowed to restructure its finances pursuant to a court-approved and administered plan. The company, Allens Inc., wants to sell off its frozen vegetables processing business in Georgia so that it can concentrate on its canned food business. Allen bought five frozen foods processing plants from Birds Eye Foods Inc. in 2006 and later sold four of them to a private investment group. It is seeking a buyer for its Georgia location.
Allens, in business for 86 years, plans to be able to pay off all its unsecured creditors. The largest is Ball Metal Food Container of Broomfield, Colorado, owed $46.2 million. The second is Crown Cork & Seal USA of Philadelphia, owed $18 million. The Arkansas company’s vegetables are sold under the labels Allens, Royal Prince, Princella and Freshlike.
The company, which employs 960 people, plans to continue operations. In its court filing, the company listed both assets and debts as in the range of $100 million to $500 million and total creditors at between 1,000 and 5,000. In a statement, the company said that it is committed to continuing the delivery of quality vegetables to its customers, and it plans to emerge from the bankruptcy as a more competitive, stronger business.
When businesses are faced with debts that seem insurmountable, there may be bankruptcy strategies or other debt relief options that they may want to consider. An attorney may be able to present various alternatives that may be appropriate.
Source: ABC News, “Arkansas Canner Allens Files for Bankruptcy“, October 29, 2013