Pennfield Corp. files for bankruptcy, asset saleTim Stuhldreher
Wellsource is a subsidiary of Carlisle Advisors, Pennfield said in a statement. Pennfield’s business should not be disrupted, and the sale should be complete within 90 days, the company said.
Because the sale is an auction, other parties will be able to bid, Pennfield said.
Carlisle Advisors has extended Pennfield a $2 million debtor-in-possession loan, according to court documents filed in U.S. bankruptcy court for the Eastern District of Pennsylvania.
Pennfield has feed mills in Mount Joy, Martinsburg and South Montrose with 112 employees total, the company said.
Pennfield’s plight stems from “a combination of long-term industry trends, commodity volatility and substantial outstanding liabilities,” CEO Arnold Sumner said in a declaration accompanying the bankruptcy filing.
The 93-year-old company sold its food service-business and a feed mill in Hempfield and implemented other cost-cutting measures, but its “financial position continued to deteriorate in June and July of 2012” due to high feed ingredient costs and low milk prices, Sumner said.
The company lost more than $10 million from 2009 through 2011, the declaration said.
The asset sale excludes a 165-acre farm in York County and Pennfield’s former corporate headquarters at 711 Rohrerstown Road. Pennfield will sell those and use the proceeds to fund its bankruptcy plan, Sumner’s declaration said.
Wellsource Nutrition “is acquiring and building feed and agronomy assets in Pennsylvania, Ohio, New York and New England,” Pennfield said.