11/26/02
Agway members met in Syracuse last week to hear reports from management and the board of directors and to elect directors.
As previously announced, Agway Inc. and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Oct. 1.
Four wholly owned Agway Inc. subsidiaries – Agway Energy Products LLC, Agway Energy Services, Inc., Agway Energy Services-PA, Inc. and Telmark LLC – were not included in the filings. Also not included was Cooperative Milling, a joint venture between Agway and Southern States Cooperative.
In his report to Agway members and investors, CEO Donald Cardarelli reviewed the circumstances that led to Agway’s filing for Chapter 11 and reported on the progress made since then, including:
• Court approval for access to the company’s $125 million debtor-in-possession credit facility, which gives Agway and its stakeholders assurance that operations can continue as normal and that the Company’s vendors will continue to be paid.
• Court approval of several employee, customer and operational programs to ensure seamless transition to the Chapter 11 process.
• Court approval to sell Agway’s Agronomy and Seedway businesses and related assets to GROWMARK, a transaction which is expected to close within the next few weeks.
Cardarelli said that Agway’s businesses continue to experience no interruption of production, service or distribution. “We appreciate the cooperation we have received from our vendors and remain committed to delivering in full and on time all products and services to Agway customers,” said Cardarelli.
The company also announced that it has targeted December 2003 for its emergence from Chapter 11.
“The board and management team are fully committed to preserving the maximum value possible for Agway’s securities holders, other creditors and employees,” said Agway Board Chairman Gary Van Slyke. “We are also committed to moving through the Chapter 11 reorganization process as quickly as possible.”
Four incumbent directors were re-elected to three-year terms on the Agway Board of Directors. The elected directors included: Stanley Burkholder, Chambersburg, Pa.; Donald Cardarelli, Jamesville, N.Y.; Jeffrey Martin, Cazenovia, N.Y.; and Richard Skellie, Salem, N.Y.
Gary Van Slyke, Pike, N.Y., was re-elected chairman and Andrew Gilbert, Potsdam, N.Y., vice chairman.