Building on Agriprocessor’s Strength, Trustee Points Way to Sale in New Year
Posted : Wed, 07 Jan 2009 21:33:55 GMT
Author : NY-TRIAX-CAPITAL
Category : Press Release
NEW YORK - (Business Wire) Joseph E. Sarachek, the Chapter 11 Operating Trustee of Agriprocessors Inc., announced today that the Postville, Iowa-based kosher food processing giant is on track to undergo a competitive bidding process among new potential buyers in the first quarter of 2009. Under the guidance of a veteran management team, the company continues to enhance its reputation as a market leader by ramping up production heading in to peak demand during the crucial Passover season.
“If you walk the plant floor today you will find motivated, dedicated employees working with nationally respected meat industry executives. Highly regarded professionals including Alan Glueck, Arnie Mikelberg and Marshall Samler have brought their decades of meat industry expertise to bear on behalf of Agriprocessors,” Mr. Sarachek wrote in an open letter to the company and its clients.
“Together, we are reopening up many of Agri’s production lines, ensuring that when this plant is sold to new owners it will have the means of assuming quickly its dominant position in the marketplace. Already many former customers have returned with the knowledge that a strong Agri creates a genuine competitive environment for meat and poultry products. By way of underscoring our confidence in the future, we have placed new eggs for growing chickens which will allow us to meet increased demand during the upcoming Passover season,” Sarachek said. “We are also taking steps to reopen the beef lines so that the plant is processing meat by Passover as well.”
Triax’s Mission: Preserving Agriprocessors Role as an Industry Leader
Sarachek, the Chapter 11 Operating Trustee, a principal in Triax Capital Advisors, was appointed by the United States Bankruptcy Court to ensure that Agriprocessors emerges from bankruptcy as a robust, highly-valued company whose business model and production practices ensure it resumes its role as an industry leader.
The Triax executive stated, “The new year promises to see energetic bidding for the Agri facility as potential owners inspect a resurgent plant being supervised by dedicated and skillful management and enjoying a return of long standing customers. The fact is there is a loyal and knowledgeable consumer market that knows Agri remains the impeccable standard of excellence for kashrut and they want our products.”
Sarachek credits Agriprocessors new management team and dedicated employees with positioning Agriprocessors for a successful turn around and sale. “It could not have occurred without the support and encouragement of Agri lenders, employees, rabbinical staff and vendors. Together, they represent a team that is restoring this facility to its national leadership role that will prompt vigorous bidding among investors who recognize the inherent strength of this incredible facility. We are also enjoying the full support and cooperation of local, state and federal authorities.”
Triax continues to work closely with its bankers to sustain financing for the plant The reorganization, restructuring and rebirth of Agriprocessors under new ownership represents a significant success story amid the troubled U.S. economy.
1. Agriprocessors is working at less than 20% of its former output.
2. Most of its workforce gave up waiting for Agriprocessors' revival and left town.
3. The brand is next to worthless.
4. Agriprocessors has lost much of its former market to other kosher meat and poultry companies.
5. Companies interested in buying Agriprocessors want to buy it at fire sale prices. Sarachek won't sell that cheap. So far the only offer close to what Sarachek wants was made by a shadowy investment firm, apparently using Rubashkin money to 'invest' in Rubashkin's own company. (More here.)
No honest man could write or okay this press release.
Sarachek paid to have it written and okayed its release.
And that is the problem.