Agri-Best selling meat in Chapter 11
Agri-Best Holdings LLC, a processor and distributor of meat products for the restaurant industry, was authorized this week to sell 200,000 pounds of choice strip steak to RCH Enterprises Inc. for $4.25 a pound.
The company filed a motion to sell the remaining 50,000 pounds of choice strip in inventory to the same buyer for the same price, unless a better offer turns up before the sale- approval hearing on Nov. 17.
Agri-Best this week also received final approval for $1 million in financing from secured lender Wells Fargo Bank NA.
The company, known in the trade as Protein Solutions, filed under Chapter 11 on Oct. 5 in its hometown of Chicago. Agri-Best owed $14.6 million to Wells Fargo, which has a lien on accounts receivable and inventory with a book value of $14.2 million.
Another $5.9 million is owed to equity-holder Advantage Capital Partners on a secured claim. Advantage has a lien on all assets, court papers say.
The book value of all assets is almost $20 million and annual revenue is about $140 million, the company says.
The case is In re Agri-Best Holdings LLC, 10-44595, U.S. Bankruptcy Court, Northern District Illinois (Chicago).