Sun World sees auction as positive step
January 13, 2005
The long road out of bankruptcy appeared near an end for Sun World International Inc. in Bakersfield, CA, with the announcement that the company was scheduled to go on the auction block Jan. 13 with at least three bidders showing strong interest in acquiring the company.
The Chicago Sun-Times reported Wednesday, Jan. 12, that "an auction for the business, which generates $120 million in annual revenue, will be held Thursday [Jan. 13], subject to approval of a bankruptcy judge on Friday."
According to the Sun-Times story, a Lake Forest, IL-based investment group, Black Diamond Capital Management, "leads the pack of bidders? and has started the bidding with a signed offer "to pay $95 million for Sun World and assume its liabilities." Two other bidders have pledged at least $1 million more than that, "but Black Diamond is free to raise its bid."
Black Diamond already had involvement with Sun World as one of the company?s major bondholders.
In a Jan. 12 interview with The Produce News, Tim Shaheen, president and CEO of Sun World, confirmed that the auction was scheduled to take place on Thursday, and was subject to the court?s approval at a hearing the next day. He also confirmed that Black Diamond, which "owns some of the debt of the company," is one of three parties involved in the bidding, but he did not name the other two.
?There are three very interested parties, which is good," Mr. Shaheen said. As to the likely outcome of the bidding, "I don?t know how I could handicap it for you." But he said he finds it "really interesting that there are three very interested parties looking at acquiring the entire business."
Mr. Shaheen did not express a preference for one of the prospective new owners over another. "I think any one of the three would be great," he said.
After two years in bankruptcy, "we are all " very excited just about the emerging? from bankruptcy, he added.
One of California?s leading agricultural companies, Sun World filed for Chapter 11 bankruptcy protection in early 2003. The filing was the fifth largest in the U.S. Bankruptcy Court for the Central District of California in 2003, with assets listed at $138 million and liabilities listed at $121 million.
The Chicago Sun-Times reported Wednesday, Jan. 12, that "an auction for the business, which generates $120 million in annual revenue, will be held Thursday [Jan. 13], subject to approval of a bankruptcy judge on Friday."
According to the Sun-Times story, a Lake Forest, IL-based investment group, Black Diamond Capital Management, "leads the pack of bidders? and has started the bidding with a signed offer "to pay $95 million for Sun World and assume its liabilities." Two other bidders have pledged at least $1 million more than that, "but Black Diamond is free to raise its bid."
Black Diamond already had involvement with Sun World as one of the company?s major bondholders.
In a Jan. 12 interview with The Produce News, Tim Shaheen, president and CEO of Sun World, confirmed that the auction was scheduled to take place on Thursday, and was subject to the court?s approval at a hearing the next day. He also confirmed that Black Diamond, which "owns some of the debt of the company," is one of three parties involved in the bidding, but he did not name the other two.
?There are three very interested parties, which is good," Mr. Shaheen said. As to the likely outcome of the bidding, "I don?t know how I could handicap it for you." But he said he finds it "really interesting that there are three very interested parties looking at acquiring the entire business."
Mr. Shaheen did not express a preference for one of the prospective new owners over another. "I think any one of the three would be great," he said.
After two years in bankruptcy, "we are all " very excited just about the emerging? from bankruptcy, he added.
One of California?s leading agricultural companies, Sun World filed for Chapter 11 bankruptcy protection in early 2003. The filing was the fifth largest in the U.S. Bankruptcy Court for the Central District of California in 2003, with assets listed at $138 million and liabilities listed at $121 million.
