Allens in bankruptcy with support of first-lien, second-lien lenders

By Caroline Salls

Pittsburgh, Oct. 28 - Allens, Inc. filed Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the Western District of Arkansas.

According to a company news release, Allens entered bankruptcy with the support of its first-lien and second-lien lenders and has received a commitment from its first-lien lenders for debtor-in-possession financing to support its continued operations.

Specifically, the company received a commitment for $119.67 million in DIP financing. Bank of America, NA is the administrative agent.

The facility is comprised of a $14.17 million senior secured, superpriority term loan facility and a $105 million senior secured, superpriority revolving loan.

The DIP loan will mature on the earliest of 24 days after the bankruptcy filing date if the final order is not entered, Feb. 14, acceleration of the loans, conversion or dismissal of the Chapter 11 case, the closing date of a sale and the plan of reorganization effective date.

Interest on Libor term loans will be Libor plus 650 basis points; interest on Base rate term loans will be Base rate plus 550 bps; interest on Libor revolving loans will be Libor plus 550 bps; and interest on Base rate revolving loans will be Base rate plus 450 bps.

The company is seeking interim access to $98.41 million of the revolver financing.

Company plans

In addition to taking steps to bolster its financial position, the company said it will explore strategic alternatives, including a potential sale of all or part of the operating business or emergence from the reorganization process as a stand-alone company.

Allens said it is also seeking a buyer for its frozen vegetables business in Montezuma, Ga.

"Allens has a long and proud history and we intend to use the reorganization process to become a stronger, more competitive business," president and chief executive officer Josh Allen said in the release.

Debt details

According to court documents, Allens has $100 million to $500 million in both assets and debt.

The company's largest unsecured creditors are:

• Ball Metal Food Container Co. of Broomfield, Colo., with a $46.26 million trade debt claim;

• Crown Cork & Seal USA, Inc. of Philadelphia, with an $18.04 million trade debt claim;

• Hartung Brothers Inc. of Madison, Wis., with a $7.77 million trade debt claim;

• Razorback Farms Inc. of Springdale, Ark., with a $4.14 million trade debt claim;

• Ryder Integrated Logistics Inc. of Miami, with a $3.62 million trade debt claim;

• D & E Farms Inc. of Spring Grove, Pa., with a $1.9 million trade debt claim;

• Paramount Farms Inc. of Plainfield, Wis., with a $1.73 million trade debt claim;

• Worzella & Sons Inc. of Plover, Wis., with a $1.22 million trade debt claim; and

• HC Schmieding Produce Co. Inc. of Springdale, Ark., with a $1.2 million trade debt claim.

All Veg, LLC holds 100% of the company's equity interests.

Lazard Middle Market LLC is the company's financial adviser and investment banker. Allens is represented by Mitchell Law Firm. Jonathan C. Hickman is Allens' chief restructuring officer.

Allens is a Siloam Springs, Ark., canned and frozen vegetable company. The Chapter 11 case number is 13-73597.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.