Custom Poultry Processing, LLC – Due to construction delays and cost overruns, this new Iowa-based poultry processor ran out of cash only weeks after it began operating and was forced into an involuntary chapter 7. The case was converted to chapter 11 and SC&H Capital was retained to find capital to get the facility running again and, if possible, assist with a reorganization of the company.
Ultimately, a reorganization was not supported by the creditors, so SC&H pivoted to marketing the company for sale and had 53 parties execute confidentiality agreements, with 10 of those groups conducting extensive due diligence. Five parties participated in an auction, including groups from Canada and Mexico, and after lively bidding, an offer more than four times higher than the opening bid was selected. Closing occurred shortly afterward and operations restarted.