AgriBioTech Announces Turfgrass Unit Sale

Budd is a former president and chief operating officer of ABT. J.R. Simplot is a privately held agribusiness corporation headquartered in Boise, Idaho. Completion of the transaction is subject to Bankruptcy Court and other governmental approvals, a diligence review by the purchaser, final approval of the purchaser's board of directors and other stipulations.

"The sale of these assets represents a major step forward in the company's reorganization under Chapter 11," stated Bradley Sharp of Development Specialists Inc. (DSI), a court-appointed reorganization consultant to ABT. "We are optimistic that the necessary approvals can be obtained, and the other conditions to completion of the transaction can be satisfied, within the next several weeks."

ABT, which is a full-service seed company specializing in the forage and turfgrass sector, has been in Chapter 11 bankruptcy since Jan. 25. Nasdaq delisted the company Feb. 22. In the second quarter ended Dec. 31, 1999, the company lost $19.5 million, or 39 cents a share, on sales of $52 million. ABT also consists of a research and development division for proprietary seed varieties, seed processing plants and a national and international distribution and sales network.

As part of the transaction, the purchaser is expected to assume ABT’s obligations under contracts with its growers and other contracts. The growers' contracts call for ABT to purchase existing turfgrass seed inventory in the growers' possession.

"The sale is consistent with the company's previously announced strategy of selling its assets in one or more going-concern sales as efficiently and expeditiously as possible to preserve the value of the bankruptcy estate. As part of this strategy, the company is actively pursuing, and is close to completing, other agreements in principle to sell its forage seed business as well as other residual assets. Despite the level of interest and the bids received thus far, management is doubtful that the sale of the company's assets will generate funds sufficient to permit any distribution to the company's shareholders," said William Brandt Jr., ABT’s bankruptcy court-appointed responsible person.

On Feb. 15, 2000, the Bankruptcy Court approved Brandt as the company's responsible person and approved the company's retention of DSI as reorganization consultants. Brandt is a principal of DSI.

For more information regarding ABT’s bankruptcy case, view the following articles that have appeared on Lawn & Landscape Online:
AgriBioTech To File Voluntary Petition For Reorganization

Also visit www.agribiotech.com for more information about the company.