ALBUQUERQUE, N.M. (AP) - A federal judge has approved a Canadian company's last-minute $26 million cash offer for an eastern New Mexico peanut butter plant that went bankrupt after a salmonella outbreak and nationwide recall.
But the fight for Sunland Inc. appears far from over.
Lawyers for Hampton Farms of Severn, N.C., which won a first round of bidding for the company last week, are laying the groundwork for an appeal.
At Wednesday morning's bidding, Hampton Farms increased its offer to $25.1 million, but only after making it clear it was doing so under protest.
Hampton Farms bid $20 million for the plant March 20. But just minutes before a court hearing Friday to approve the sale, Golden Boy Foods called the bankruptcy trustee with a higher cash offer
ALBUQUERQUE, N.M. (AP) - A bankruptcy judge has approved the sale of an eastern New Mexico peanut butter plant that went bankrupt following a 2012 salmonella outbreak to a Canadian company.
Golden Boy Foods Ltd. is buying the defunct Sunland Inc. plant in Portales for $26 million. U.S. Bankruptcy Judge David Thuma approved the sale Wednesday.
The sale price is more than 25 percent greater than the $20 million offered by Hampton Farms of North Carolina in an auction last week.
At the request of a bankruptcy trustee, Thuma ordered a second auction Wednesday morning after Golden Boy offered $25 million in cash Friday. Hampton Farms increased its offer to $25.1 million, but Golden Boy won with a new bid of $26 million.
A Hampton Farms official says the company is disappointed.