Pennfield on Friday filed paperwork outlining proposed bidding procedures and the asset purchase agreement it arranged with Carlisle Advisors.
Carlisle Advisors will be a stalking horse bidder and is to receive a breakup fee of $468,000 if its deal does not go through.
According to the bid procedures, any would-be buyers must submit bids by 4 p.m. Nov. 6, and bids must exceed Carlisle Advisors' offer, plus the breakup fee, by at least 2 percent. If bids are received, an auction is to take place Nov. 9, the document says.
Otherwise, Carlisle Advisors will pay the $15.6 million, less adjustments reflecting various Pennfield liabilities.
As part of its bid, Carlisle Advisors has agreed to extend Pennfield a loan of $2 million, the documents say.
Lancaster County-based Pennfield filed for bankruptcy on Oct. 3. It said Carlisle Advisors planned to buy its assets and operations, which it would run via a subsidiary named Wellsource Nutrition.
Carlisle Advisors' managing partner is Ralph Briggs, chief operating officer of Maryland cattle feed company Novera Protein. Messages left for Briggs were not immediately returned.