ALBUQUERQUE, N.M.—A federal bankruptcy judge in Albuquerque Tuesday ordered a new auction for the defunct Sunland peanut butter plant in eastern New Mexico.

The trustee overseeing the liquidation of the Portales plant had asked to be able to consider a $25 million cash offer that came in after last week's bidding for the plant. The offer from Canada's Golden Boy Foods is 25 percent higher than what had been considered a winning $20 million bid Thursday from a North Carolina company, Hampton Farms.

The trustee says the higher offer could mean the difference between whether or not unsecured creditors will get any payments from Sunland, which filed for bankruptcy last year following the salmonella outbreak that prompted a nationwide recall and shuttered its operations for eight months.

U.S. Bankruptcy Judge David Thuma set the new bidding for 10 a.m. Wednesday.