BREAKING! Agriprocessors To Lose Electricity Monday Unless Bill Paid, Bank Claims

The bill? $276,000, as…

…the Cedar Rapids Gazette reports:

[The following is an updated version. The earlier version is here.]

Lender lowers boom on Agriprocessors
By Dave DeWitte

CEDAR RAPIDS - A lender seeking control of Agriprocessors Inc. says the meatpacker’s finances are so dire that “millions of chicks and chickens (are) in danger of starving to death.”

Chief U.S. District Judge Linda Reade, after a telephone hearing Friday, gave Atec Liquidations of St. Louis limited powers to oversee Agriprocessors in Postville and a sister plant in Gordon, Neb., to make sure that assets are not diminished before an action filed Thursday in Cedar Rapids can be settled.

First Bank Business Capital of St. Louis sued Agriprocessors, Local Pride LLC and two members of the family that owns them — Abraham Rubashkin and his son and former CEO Sholom Rubashkin — saying the bank should be allowed to sell its collateral because Agriprocessors had defaulted on a $35 million loan by the bank’s branch in Decorah, Decorah Bank & Trust Co.

It was a stunning conclusion to a week that saw the company fined $10 million for violating Iowa wage laws and the arrest of Sholom Rubashkin on federal charges including conspiracy to harbor illegal immigrants for financial gain.

The lender’s lawsuit said the bank has been told that Agriprocessors’ electricity will be cut off if it doesn’t pay $188,000 that is past due and a $88,000 deposit Monday.

“The termination of electric service could result in the spoilage of millions of dollars in fresh and frozen meat products in the borrowers’ inventory,” the lawsuit says. “In addition, First Bank is informed and believes that millions of chicks and chickens in borrowers’ inventory are in danger of starving to death if they are not provided with appropriate feed and water.”

The judge’s order allows Atec to inspect Agriprocessors’ facilities to preserve the status quo, including the maintenance of refrigeration equipment so meat does not spoil, keeping animals watered and fed and paying necessary bills.

The Rubashkins were ordered to provide funds to pay the electric bill no later than noon Monday.

A spokesman for Agriprocessors, Chaim Abrahams, said Friday afternoon that it was not clear how the company would be affected by Friday’s events.

Agriprocessors was the nation’s largest kosher meatpacker before federal immigration officials found that about 390 of its employees were working in this country illegally in May.

Agriprocessors halted its beef kills earlier this week, while continuing to operate some other processes. A staffing company that had provided more than 300 temporary workers to Agriprocessors confirmed Friday that it had terminated its services.

The lawsuit seeks even more power for the liquidation company, which is acting as a court-appointed receiver in the case. It asks that Atec be given authority to sell the bank’s collateral. A hearing will be held at 9 a.m. Wednesday in District Court in Cedar Rapids on that motion.

Without a receiver in charge, the lender says, the collateral could be encumbered by liens and other legal claims, making it impossible to have a foreclosure sale.

Receivers are companies or individuals that manage or oversee a business or other asset. They act on the authority of the court, often in a legal dispute between two parties with a legal interest in that asset. In such cases, they can ensure that one party’s actions do not diminish the assets’ value or unfairly siphon away its profits.

The lender claimed in the lawsuit that Agriprocessors admitted diverting funds constituting its collateral to a bank in Luana, Iowa, and expressed concern about more misappropriation. It said employees of First Bank Business Capital employees who went to Agriprocessors’ premises on Thursday to verify its collection and deposit of accounts receivable were told to leave.

Comments

[Nigritude Ultramarine]

Can we make donations via Paypal?

[Archie Bunker]

Shmarya's "celebration" of Rubashkin's downfall is just as bad as that atrocious display on CrownHeights.info of the morons in Postville who are deluded enough to think they should throw a party.

Why do I say this? It seems Shmarya, besides possibly popping champagne, has violated the Sabbath with this post.

Is he so excited that he couldn't wait a bit longer?

[Shmarya]

I posted it before Shabbos, Archie. At 5:57. Why does it say 6:57? I don't know. Perhaps its another in a long line of TypePad glitches, this one due to this weekend's time change.

I'll manually change the time now…

[Archie Bunker]

"employees of First Bank Business Capital employees who went to Agriprocessors’ premises on Thursday to verify its collection and deposit of accounts receivable were told to leave."

Is that illegal under the terms of loan agreements?

What happened to non-spokesman spokesman Getzel?

[Shmarya]

CORRECTION:: This is tonight's post, not yesterday's.

Shabbos ended here at 6:45 pm.

[Archie Bunker]

I figured it WAS 5:57 - but in Minnesota time - with the header saying it was posted today, Nov. 1st, not yesterday Oct. 31st.

[state of the Jews]

Nigritude Ultramarine:

Best bet - send donation to St. Bridget's. They've been paying the rent and utility bills for the undocumented workers.

But frankly, I don't think $ will help. Not enough time and the real problem is the landlord - GAL Investments - is behind $35,000+/- in water payments to the town.
GAL claims it is because Agri hasn't paid him.

Gal should probably declare bancruptcy to protect himself from creditors (the town) and force them to keep the water on.

Ultimately, the State of Iowa may have to step in - either that or move FEMA trailers into town to house out-of-work folks caught in this train wreck.

Heard that about forty people have already left town for jobs elsewhere.

[state of the Jews]

Also heard that workers are receiving eviction notices: No jobs, no income, no way to pay the rent.

[Tanya]

The faces attending the farbrengen look horrible-like the worst depictions that the secular world could have of Jews. Horrible. I can't stand seeing my people up to looking so evil, yes, that's it, they look evil. G-d should only help us and reveal his miracles soon.

[Curious Postville Native]

The Decorah Catholic Church is asking for host families. I heard there wasn't the response they were hoping for. It might be time for the people to move on and start anew!

[Curious Postville Native]

[Agriprocessors had defaulted on a $35 million loan by the bank’s branch in Decorah, Decorah Bank & Trust Co.

Decorah Bank & Trust Co.

I wanted to emphasize this particular statement for the people of Northeast Iowa who read this article. This nightmare is seemingly endless.

[--]

Maybe the Guatemalan man in Postville who is driving back and forth to Waterloo where he moved his "Tonita's Express" grocery can give some of the former employees rides to Waterloo, where they could catch Waterloo city buses to the Greyhound or Jefferson bus depot. _ Postville might have been an interesting place for retired U.C.L.A. professor Dr. Valerie Hunt to use her special movie camera that takes moving photos of people showing the human auric field. It shows several minutes of footage of people with beautiful colors in the different layers of the auric field,for example a mother interacting with her toddler. Then it shows a man eating at a fast food restaurant with a small dingy dirty brown energy field around him. - People watching a VHS video of a talk she gave which included that short movie laughed to see the beautiful photos change to this image. I dealt with one person who I think was Jewish and the most dominant area of his energy field was at the 2nd and 3rd chakras, its like there was nothing there above the 3rd chakra. who knows this may have been something that could change in a person from month to month, thankfully seldom able to notice things like that.

[isabel]

Will the local Catholic Church and the surrounding ones help Shalom and Leah and their 10 children with food and rent until he is sent to court? ,He can't leave northeast Iowa while wearing an ankle braclet.

[Sea]

"Will the local Catholic Church and the surrounding ones help Shalom and Leah and their 10 children with food and rent until he is sent to court?"

You know.... If he asked, I'm sure they would help his family the same way they helped everybody else. Of all the terrible things I've seen during my time in Postville, through all the corruption and false piety... The way the local churches have stepped up has been inspirational.

[state of the Jews]

I wouldn't worry about Shalom and Leah needing charity. I'm sure they have enough socked away.
I must say Paul Real, Father Paul, Sister Mary and Pastor Brackett have been wonderful. They deserve much praise for what they have endured and how they have helped everyone in Postville.

[--]

How wonderful that Fr. Gaul (Trinity Cluster pastor) got to deal with this when he had had 2 heart attacks, 2 bypass surgeries, and was hoping for a low stress job. At least he might be able to live in one of the other 2 towns from that parish. Saturday Nov. 8th the Guatemalan native Indian woman who won the Nobel Peace Prize will be at Saint Bridgets in Postville, noon through the evening. See article in Decorah newspaper online.