Fresno, Calif.-based Zacky Farms LLC has conducted a Chapter 11 auction for substantially all of its assets and says that The Robert D. Zacky and Lillian D. Zacky Family Trust was the successful bidder. As part of the transaction, the trust will retain substantially all of the Zacky employees. The auction results were announced at a hearing of the bankruptcy court Jan. 18.
The sale is subject to approval by the bankruptcy court at a final hearing scheduled for 2 p.m. Monday, Jan. 28. Terms of the DIP financing require the sale to close by Jan. 31. Imperial Capital served as investment banker for the seller in the transaction.
Keith Cooper, chief restructuring officer of Zacky Farms, said, “We are extremely pleased that the Zacky Trust was the successful bidder whereby the operations and jobs of Zacky Farms are preserved. Further, this result confirms the commitment of Lillian Zacky and Scott Zacky to the continued operation and turnaround of Zacky Farms.”
Cooper added, “I would like to personally thank all of the employees, customers, growers and vendors who have stood by Zacky Farms over the past three and a half months and have supported Zacky Farms during this challenging process. This is a great day for Zacky Farms and the Zacky family of employees because it is now possible for Sam and Bob Zacky’s legacy to continue with the third and fourth generations of the Zacky family dedicated to the future of this company.”
On Oct. 8, 2012, Zacky Farms filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of California in Sacramento, Calif., and has continued to operate as debtor in possession.
Zacky Farms is a vertically integrated poultry company that has been in operation for more than 70 years.