Dow Jones: Judge Clears Creditor Vote on Groeb Farms Chapter 11 Plan
Dow Jones Business News reported that a bankruptcy judge cleared creditors of Groeb Farms to vote on the company’s restructuring plan, which would see it emerge from Chapter 11 protection under the ownership of a private equity firm.
Dow Jones said the Chapter 11 plan makes way for Peak Rock Capital to take control of Groeb Farms after providing a $30 million bankruptcy loan to the company, which filed for bankruptcy protection after regulators caught it illegally buying Chinese honey through other countries to avoid antidumping tariffs, to pay off the remaining balance on a $25 million bank loan Peak Rock bought from Wells Fargo Bank, and to keep the company operating during the Chapter 11 case.
Dow Jones said further three private equity firms extended an additional $7 million to remain the company’s lenders but with new terms that weren’t disclosed in court papers; unsecured creditors would recover 10% of the amount they are owed.
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