Allens to be sold in $124.78 million deal

Posted: February 7, 2014 at 12:02 p.m.
Updated: February 7, 2014 at 12:10 p.m.

Allens Inc, a Siloam Springs-based canned vegetable company in Chapter 11 bankruptcy, will be sold to Sager Creek Acquisition Corp. for $124.78 million if approved by a bankruptcy judge.

Sager Creek is owned by investment funds controlled or advised by Sankaty Advisors LLC and GB Credit Partners LLC.

The agreement was reached after an auction was held. A hearing to approve the bid is scheduled for Tuesday.

In late October, Allens filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Western District of Arkansas. Court filings show that Allens owes its primary lenders $114.36 million and its secondary lenders $65.6 million, and had between $100 million and $500 million in assets.