Unsecured creditors, Postville businesses, former and current workers to get nothing from sale of Agriprocessors.
Cedar Rapids, Ia. – No other bidders stepped forward today to challenge a Canadian businessman’s bid to buy the Agriprocessors meatpacking plant in Postville.
The troubled plant was the subject of an auction in bankruptcy court this afternoon. No one made a higher offer than the bid announced last month by Hershey Friedman and his partners.
Friedman, who lives in Montreal, leads a group known as SHF Industries LLC. He has agreed to pay about $8.5 million to major creditors of Agriprocessors, mainly First Bank. Smaller creditors, including numerous Postville-area businesses, would get nothing from the deal.
Agriprocessors used to be the nation’s largest supplier of kosher meat, and it was the Postville area’s dominant employer. But it tumbled into bankruptcy after a May 2008 raid by federal immigration authorities. Several of its former leaders face federal and state criminal charges, including that they defrauded the bank and used illegal immigrants and minors as workers. Several mid-level managers have pleaded guilty.
Trials for the top managers are scheduled to begin in the fall.
The plant has maintained limited chicken production while bankruptcy proceedings continued, but it has not resumed more complicated beef processing. Many Postville residents worried that the plant would close, which would devastate the area’s economy. But state economic development officials have said Friedman intends to revive the business.
The sale still must be vetted by the US Attorney and approved by the bankruptcy judge. The next hearing is set for July 15.
Here is the transfer of Metropolitan Life Insurance Company's loan from the old Agriprocessors to SHF, Hershey Friedman's new company:
This article pertains to Nevel Properties, the RCF realty company.
FDIC Takes Over Lawsuit About Rubashkin Finances
http://www.wcfcourier.com/articles/2009/07/06/business/local/11470671.txt
Posted by: neighbor girl | July 06, 2009 at 03:38 PM
All it says is the bank was insolvent and the FDIC took over. In that process, it acquires outstanding loans – like Rubashkin's.
Posted by: Shmarya | July 06, 2009 at 03:40 PM
... But state economic development officials have said Friedman intends to revive the business
Yes!
Posted by: harold | July 06, 2009 at 05:25 PM
Friedman says he has the intentions to revive Agri.
How he intends to do this, as well as how much more of his own money it involves, remains to be seen.
But if he's just a front for the RFC, or, if the RCF plans for it's own takeover, is a horse of a very different color.
Posted by: sage | July 06, 2009 at 05:41 PM
what does SHF stand for?
Sholom (rubashkin)Hershy Friedman?
or
Shit Happens F***k you all?
Posted by: giving up | July 06, 2009 at 06:00 PM
Take a look at the AP wire. An excerpt from Nigel Duara's story:
"Bankruptcy trustee Joe Sarachek said "moving parts" remain to be resolved in the sale process, but acknowledged that Monday's auction clears the way for the plant to finally be sold.
After the hearing, SHF attorney Anita L. Shodeen refused to identify the company's owners, and denied reports that Canadian plastics manufacturer Hershey Friedman is part of the ownership group.
I don't know where that information about Mr. Friedman came from ... SHF Industries is a LLC with two members under Iowa law," Shodeen said. "I cannot identify them.""
From AP wire via Google.
Who is going to extend trade credit to an unknown owner?
Posted by: FirstGenerationBavarianAmerican | July 06, 2009 at 06:04 PM
SHF?
Swine and Horse Food Industries?
Posted by: FirstGenerationBavarianAmerican | July 06, 2009 at 06:18 PM
SHF = Single Hispanic Female
If I understand correctly.
Posted by: justayid | July 07, 2009 at 03:29 PM