Assets of Food Processing Business

Sale of assets of Bell Foods, L.L.C. Which includes:

1. Bell Foods’ primary assets consist of accounts receivable, inventory and furniture, fixtures and equipment. As of December 31, 2017, book value of inventory and receivables totaled approximately $875,000, subject to review by CPA for Sellers. If the Sellers are forced to liquidate rather than reorganize, liquidating AR, inventory and FF&E will be expensive and likely at a significant discount.
2. Warehouse located at 134 Brookhollow Esplanade, Harahan, Louisiana. Based on information and belief, Hancock Whitney Bank obtained an appraisal valuing the real estate and improvements owned by BELLCO at $1 million.
3. The warehouse includes cold storage refrigeration units necessary for operations. The refrigeration units are the most valuable fixed asset owned by the Sellers. The units are highly customized to fit the facility and are over 8 years old. Resale of these types of units is complicated by the fact that they are coming from South Louisiana, which imposes additional strain on the units when compared to other areas of the country. Further, if you turn the units off and they sit for more than 30 days, it is unlikely that the units will restart and, typically, the freezer walls collapse. Hence, creditors will not realize any value from these units unless the Sellers are able to continue operations.