AFA Investment receives approval for sale procedures, June 21 auction

By Jim Witters

Wilmington, Del., May 8 - AFA Investment Inc. received court approval on May 8 for its bid procedures after resolving objections from the official committee of unsecured creditors, who believed the timetable was too aggressive.

The debtors resolved all objections by adjusting some dates in the procedures order, AFA attorney Tobias S. Keller said during a hearing in the U.S. Bankruptcy Court for the District of Delaware.

In late March, AFA retained Imperial Capital, LLC to market the assets and identify potential buyers.

No stalking horse bidder has been designated.

Bid procedures

Under the procedures approved May 8,

• If a stalking horse bidder emerges, AFA must identify the bidder by June 11, and a hearing for approval of stalking horse protections must occur on June 15;

• The bid deadline is June 19, instead of the previous June 11;

• An auction, if needed, will be conducted on June 21, instead of the previous June 12; and

• The sale hearing is scheduled for noon ET on June 26, instead of the previous June 15.

An objection filed by Zurich American Insurance Co. was deemed to be a matter for the sale hearing and was adjourned to that date, Keller said.

AFA Investments, the parent company of AFA Foods Inc., a King of Prussia, Pa.-based processor of ground beef products, filed for bankruptcy on April 2 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 12-11127.

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