Thorn Apple Valley, Inc. (Southfield, MI) has entered into a letter of intent with IBP, Inc. (Dakota City, NE), under which IBP will purchase the operating assets of Thorn Apple Valley for approximately $112 million. IBP would purchase Thorn Apple Valley as a going concern and continue to operate all of TAV's plants with current management and personnel.
Thorn Apple Valley filed for protection under Chapter 11 of the Federal Bankruptcy Code on March 5, 1999. The sale to IBP is subject to, among other things, the approval of the Federal Bankruptcy Court and other regulatory bodies, IBP's completion of its review of TAV's properties, TAV's continuing to operate in the ordinary course of business and there being no material adverse change in TAV's operations prior to the closing of the sale.
TAV's debt is currently well in excess of the proposed purchase price. The proceeds of the sale are not expected to be sufficient to provide any distribution to shareholders of TAV when the bankruptcy proceedings are concluded.
"We look forward to completing this sale and providing stability to our valued employees, customers and suppliers," stated Joel Dorfman, president and CEO of Thorn Apple Valley. "The bankruptcy process has been a difficult one for all concerned, and we believe that the sale of assets to IBP provides the best result obtainable for Thorn Apple Valley and all those associated with it."