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  1. #21
    Join Date
    Nov 2011
    Location
    Rader, Greene County, Tennessee, USA
    Posts
    6,583

    Default Re: Groeb Farms Goes Bankrupt

    What a surprise ... The Groeb Farms prepackaged bankruptcy plan was approved by the court!
    Judge Walter Shapero of the US Bankruptcy Court in Detroit gave his approval for the restructuring plan of Groeb Farms Inc, The Wall Street Journal reported. The decision will facilitate the Michigan-based honey supplier's emergence from Chapter 11 protection under the ownership of Peak Rock Capital, a private equity firm.Shapero gave the greenlight for the plan on Thursday, December 19 after a confirmation hearing. The decision will enable Texas-based Peak Rock Capital to gain control of the company after it would extend it a bankruptcy loan amounting to $30 million.

    Read the rest of the article here:
    http://www.vcpost.com/articles/20054...uring-plan.htm


    Note that the Groeb Farms name has apparently been deemed irreversibly tainted by the criminal swindle scheme they used, and they are changing the name of the surviving company (to protect the guilty?
    ).

    Peak Rock Capital will take control of the former Groeb Farms , now known as Natural American Foods Inc., after extending a $30 million loan to the company, which filed for bankruptcy protection after regulators caught it illegally buying Chinese honey through other countries to avoid antidumping tariffs....

    You need an account to read the rest of this article:
    http://pevc.dowjones.com/Article?an=...8%26ctype%3dts

    The "Natural" in the new name,
    Natural American Foods Inc., is a nice touch. No word on whether they have also changed their business ethics.

    Graham
    USDA Zone 7A Elevation 1400 ft

  2. #22
    Join Date
    Sep 2005
    Location
    Greensboro, North Carolina
    Posts
    2,808

    Default Re: Groeb Farms Goes Bankrupt

    Quote Originally Posted by Rader Sidetrack View Post
    What a surprise ... The Groeb Farms prepackaged bankruptcy plan was approved by the court!
    It wasn't approved because it was prepackaged. It was approved because the creditors voted IN FAVOR of it.

    The Groeb Farms Chapter 11 Plan had 4 main classes of creditors:

    1. Senior Loan Claims - 1 company - 1 voted in favor ($16.5M Debt)
    2. Senior Subordinated Note Claims - 7 companies - 4 voted (3 didn't vote) - 4 voted in favor (100% of votes, 100% of debt)
    3. Trade Claims - 135 total members - of which 36 voted - 31 in favor (86.11%) - those that voted in favor held 98.94% of the debt of that class
    4. General Unsecured Claims (everyone else) - 495 total members - 18 voted, 18 voted in favor (100%)

    The vast majority of creditors voted in favor of the plan. Even the unsecured creditors that got 10% of their claim amount voted FOR getting that type of treatment.

    If that's what the creditors wanted, why would the judge stop it?

  3. #23
    Join Date
    Nov 2011
    Location
    Rader, Greene County, Tennessee, USA
    Posts
    6,583

    Default Re: Groeb Farms Goes Bankrupt

    I wonder what percentage of prepackaged bankcruptcy plans are NOT approved by the court?
    Graham
    USDA Zone 7A Elevation 1400 ft

  4. #24
    Join Date
    Sep 2005
    Location
    Greensboro, North Carolina
    Posts
    2,808

    Default Re: Groeb Farms Goes Bankrupt

    The ones that don't comply with the Code or aren't voted in favor of.

    You act like the court is some mystical creature that either says "yes" or "no" to a bankruptcy plan, like the great and powerful Oz. Doesn't really work that way. The court just makes sure the provisions of 1129 are satisfied. It's up to the debtor('s attorney) and the creditors(' attorneys) to show that the Plan DOESN'T comply with 1129, or that the creditors don't vote in favor of it.

    This plan complies with the law and was voted in favor of by the vast majority of creditors.

    Why are you so stuck up on this concept of a "prepackaged" bankruptcy?

  5. #25
    Join Date
    Nov 2011
    Location
    Rader, Greene County, Tennessee, USA
    Posts
    6,583

    Default Re: Groeb Farms Goes Bankrupt

    > Why are you so stuck up on this concept of a "prepackaged" bankruptcy?

    If that is directed to me, I'm not "stuck up" about any concept of bankruptcy, AFAIK.


    But there is a reason certain bankruptcy cases have "prepackaged" plans arranged in advance. My guess is that since a certain level of creditor agreement is required to even get the prepackaged plan before the court in the first place, the likelihood that prepackaged plans move smoothly through the court and get approved in short order is higher than with a more traditional (non-prepackaged) bankruptcy.

    That was my point in post #6, but you seemed to think otherwise. Now that the Groeb prepackaged plan has been approved, in this case at least, my point is validated. Of course that is just my opinion.

    Graham
    USDA Zone 7A Elevation 1400 ft

  6. #26
    Join Date
    Sep 2005
    Location
    Greensboro, North Carolina
    Posts
    2,808

    Default Re: Groeb Farms Goes Bankrupt

    Whatever.

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