LOS ANGELES--(BUSINESS WIRE)--New Meatco Provisions, LLC (“Meatco” or the “Company”) closed on the sale of certain of its assets to Harvest Meat Company, Inc. (“Harvest”). After conducting a process designed to maximize the value of its assets and recoveries for creditors, Meatco decided to sell its inventory to Harvest for the highest available price and at fair value. Harvest also purchased Meatco’s remaining accounts receivable and will collect the accounts for a reasonable fee.
In November 2012, Meatco defaulted on its secured loan obligations. In connection with the defaults, Meatco entered into a forbearance agreement with its lenders to gain time to attempt to cure the defaults, hiring a financial advisor to assist Meatco with seeking new business and capital, maximizing revenue, and reducing costs.
Notwithstanding these efforts, Meatco continued to encounter severe liquidity challenges and ultimately was unable to continue operations. As such, after exploring all of its options, the Company determined that the best alternative to maximize value for its stakeholders was to terminate all of its operations and sell its assets to the highest available bidder.
The Company is continuing its efforts to maximize the value of its assets.
Inquiries should be directed to Meatco’s Chief Restructuring Officer, Daniel Scouler, at (310) 207-2244.