Prime Choice Foods, Inc.
Family owned and operated manufacturer of snack food items, specifically corn and specialty tortilla chips.
Prime Choice Foods had lost of several key customers over a short period of time. The Company was forced to shut down operations in one facility and was having difficulty supporting the overhead of the remaining 2 facilities and accompanying debt. They were forced to file for bankruptcy protection and were operating in Chapter 11 for 4 months when Equity Partners was retained.
The secured creditor agreed to extend the use of cash collateral while Equity Partners searched for a buyer. After an exhaustive marketing process that identified multiple going concern bidders, an auction was scheduled among 10 qualified groups.
After 34 rounds of bidding and a 40% increase to the opening bid, the highest and best offer was selected and closing occurred 30 days later. Operations continued without a single day of interruption for customers or employees.