Zacky Farms selling its assets to family trust
Jan. 22, 2013
by Meat&Poultry Staff
FRESNO, Calif. – Zacky Farms LLC conducted a Chapter 11 auction for all of its assets and The Robert D. Zacky and Lillian D. Zacky Family Trust was the successful bidder. The Trust will retain substantially all of the Zacky’s more than 1,000 employees as part of the transaction and operations will continue.
Results of the auction were announced Jan. 18 during a hearing of the Bankruptcy Court.
“We are extremely pleased that the Zacky Trust was the successful bidder whereby the operations and jobs of Zacky Farms are preserved,” said Keith Cooper, chief restructuring officer of Zacky Farms. “Further, this result confirms the commitment of Lillian Zacky and Scott Zacky to the continued operation and turnaround of Zacky Farms.
“This is a great day for Zacky Farms and the Zacky family of employees because it is now possible for Sam and Bob Zacky's legacy to continue with the third and fourth generations of the Zacky Family dedicated to the future of this company,” he added.
Zacky Farms filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code on Oct. 8, in the US Bankruptcy Court for the Eastern District of California in Sacramento, Calif., and it has continued to operate as debtor in possession.
The sale is subject to approval by the Bankruptcy Court at a final hearing scheduled for Jan. 28. Terms of the DIP financing require the sale to close by Jan. 31. Imperial Capital served as investment banker for the seller in the transaction.
Fresno, Calif.-based Zacky Farms is a vertically integrated poultry company that has been operating for more than 70 years.