Anderson Hay Faces Collapse as PGIM Rejects $15 Million Restructuring Plan
American exporter Anderson Hay faces collapse after major lender PGIM rejected its restructuring plan over a $15 million debt dispute, prompting a crucial court hearing.
American agricultural exporter Anderson Hay has suffered a severe legal setback as major financing firm PGIM, to which it owes roughly $15 million, refused to approve its restructuring plan, leaving the company on the brink of collapse.
Bankruptcy Protection and Creditor Dispute
Last year, the company ran into severe financial difficulties and sought bankruptcy protection from the court. Since then, Anderson Hay has already sold most of its ongoing business operations, but obtaining final approval for the recovery plan required the consent of all lenders and creditors.
PGIM, the company's largest lender, argued that Anderson Hay's plan was too vague and failed to present a clear timetable for asset sales or securing new loans to cover the debt. Furthermore, the financing firm claimed that the plan disadvantaged it compared to other lenders. The lack of interest payments makes liquidating all remaining assets a far more preferable solution from their perspective.
"We are working to bridge the gaps and reach an agreed settlement in the near future," attorneys for both sides stated during a court hearing in Washington.
Asset Sales and Emergency Measures
Under Anderson Hay's original proposal, the company planned to clear all debts by the end of the current year through asset sales, equipment liquidation, collecting customer receivables, and a new financing deal. If this fails, an emergency mechanism will trigger an auction of all company real estate assets by September 2027.
In a parallel move to raise cash quickly, the company disclosed a new flash deal in court: selling its hay processing plant in Oregon for $7.65 million to Aurora Farm. All proceeds from this sale are designated to go directly toward covering the debt owed to PGIM. The company hopes the transaction will finally close by mid-December, after two previous deals to sell the plant fell through at the last minute due to the buyers' financing difficulties.
