AgFeed cancels auction, looks to sell stock to stalking-horse bidder

By Caroline Salls

Pittsburgh, Nov. 14 - AgFeed USA, LLC cancelled the Nov. 20 auction for the sale of the stock of AgFeed Industries, Inc. (British Virgin Islands) and will seek approval to sell the stock to stalking-horse bidder Good Charm International Development, Ltd. for $50.5 million, according to a Nov. 13 filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said no other qualified bids were received by the bid deadline of 4 p.m. ET on Nov. 13.

As previously reported, Ningbo Tech-Bank Co., Ltd. affiliate Good Charm has agreed to pay $52.88 million, less working capital adjustments of $2.38 million, for 100% of the outstanding stock.

The sale hearing is scheduled for Nov. 21.

AgFeed USA, an Ames, Iowa-based producer of animal feed, filed for bankruptcy on July 15. Its Chapter 11 case number is 13-11761.

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