The proposed sale of bankrupt Golden Guernsey Dairy LLC has the support of its two secured creditors, if they can recover their claims from the proceeds of the sale.
But the claims exceed the $5.5 million stalking horse bid on Golden Guernsey from Ohio-based LEL Operating Co.
Golden Guernsey, the Waukesha dairy processing business that filed for Chapter 7 bankruptcy in January, owed about $7.9 million to Accord Financial, Greenville, S.C., at the time of the bankruptcy petition. That included a term loan and purchases of accounts receivable under a factoring agreement, according to court documents filed March 14.
Accord said it is also owed an undetermined amount for financing it has provided to Golden Guernsey’s trustee to allow the facility to operate post-bankruptcy and ready it for a sale.
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