Canadian firm wins bidding for peanut butter plant

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Associated Press

Posted on March 26, 2014 at 4:00 PM

Updated Wednesday, Mar 26 at 4:04 PM

ALBUQUERQUE, N.M. (AP) — A bankruptcy judge has approved the sale of an eastern New Mexico peanut butter plant that went bankrupt following a 2012 salmonella outbreak to a Canadian company.

Golden Boy Foods Ltd. is buying the defunct Sunland Inc. plant in Portales for $26 million. U.S. Bankruptcy Judge David Thuma approved the sale Wednesday.

The sale price is more than 25 percent greater than the $20 million offered by Hampton Farms of North Carolina in an auction last week.

At the request of a bankruptcy trustee, Thuma ordered a second auction Wednesday morning after Golden Boy offered $25 million in cash Friday. Hampton Farms increased its offer to $25.1 million, but Golden Boy won with a new bid of $26 million.

A Hampton Farms official says the company is disappointed.

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