Daily News: July 13, 2012

WSJ: Cargill Wins Auction for AFA Foods’ Beef Processing Plant

Cargill Inc. has won the auction for competitor AFA Foods’ ground beef processing plant in Fort Worth, TX, a Wall Street Journal article reported. The company purchased AFA’s plant for $4.1 million plus working capital assets.

The U.S. Bankruptcy Court in the District of Delaware approved the transaction on Thursday, July 12, the article said.

Both AFA and Cargill are beef processors and producers of “pink slime.”

AFA Foods filed for Chapter 11 protection in Delaware in April due to recent changes in the market for its ground beef products and the impact of media coverage related to Boneless Lean Beef Trimmings, also known as pink slime. In connection, secured a commitment for $56 million in debtor-in-possession financing from its current lenders, GE Capital and Bank of America.

To read the WSJ article in its entirety, click here.

Previously on abfjournal.com:

AFA Foods Files for Chapter 11; GE, BofA to Provide DIP Loan, Monday, April 02, 2012