Details:
US: Agriprocessors equipment payment or repossession
Meat International
30 Jan 2009
Bank of the West filed several motions in bankruptcy court on Thursday this week, wanting overdue payments on equipment leases. If no payments are made, it wants permission to take possession of the equipment of Agriprocessors Inc.
Bank of the West is one of the creditors in the bankruptcy filing of Agriprocessors Inc.
According to Bank of the West statements in the court filings, the meatpacker is in default on five leases for equipment such as chillers, deboners, broilers, separators, compressors, scales and packaging equipment. The aggregate amount of the delinquency on all five leases is just over $133,500.
Equipment continue[s] to be used
The filing notes that the bankruptcy trustee has "not offered or provided the bank with adequate protection pertaining to the equipment leases" and that monthly payments have been suspended, but that the equipment continues to be used by Agriprocessors.
Therefore, the bank seeks to have the court compel payment on the leases by the trustee, or permission to exercise its right to repossess the equipment.
Sale of company [does] not include equipment
The bank further stated that if a sale of the company is carried out, its assets should not include the equipment in question without the bank's permission and back payment on the leases.
[Hat Tip: BC.]