ETFF Corporation

Client Profile
ETFF Corporation (formerly known as Pennfield Corporation) operated three feed manufacturing facilities in Pennsylvania that produced dairy, equine, poultry and specialty feeds to farm customers and dealers. ETFF was forced to seek protection under Chapter 11 of the U.S. Bankruptcy Code due to a combination of long-term industry trends, short-term commodity volatility and substantial outstanding liabilities.
Situation
ETFF ultimately sold the majority of its assets to multiple parties and transferred its remaining assets to a Trust pursuant to a Plan of Reorganization. In order to maximize return to creditors, the Plan Trust of ETFF Corporation retained SSG Capital Advisors as its investment banker to explore a sale of certain assets, including its interest in gas and mineral rights and the associated mineral lease with a large oil and gas company. Located in northeastern Pennsylvania, the property is approximately six acres with an inactive feed mill on the surface.
Solution
SSG conducted a comprehensive marketing process which resulted in a wide range of interest, with several proposed offers received. Shepherd Royalty’s offer was ultimately the highest and best price for the gas and mineral rights. SSG’s ability to solicit competitive offers in a fast-tracked process and experience with unique asset sales enabled the Plan Trust to maximize value. The sale closed in June 2015.