Sale of Agriprocessors approved by bankruptcy court
By LYNDA WADDINGTON • Iowa Independent
The sale of Agriprocessors in Postville was approved this morning by U.S. Bankruptcy Court Judge Paul J. Kilburg to a newly formed company.
SHF Industries, a company formed in May by Canadian plastics manufacturer Hershey Friedman and his son-in-law Daniel Hirsch, is set to become the company’s new owners. Friedman has indicated that he will continue the plant as a meatpacking operation, and will continue to focus on kosher products.
An initial bankruptcy auction failed to produce a buyer in March when two key holders of company debt made bids on their own interests. SHF Industries was able to work out deals with both the key debt holders — First Bank Business Capital and MLIC Mortgage — in May and June. SHF, according to documents released today by the court, also advanced funds to the estate in an amount in excess of $1.8 million.
SHF’s total offer for sale and transfer of assets was $8.5 million. The offer does not include leased equipment, tax refund claims, frozen inventory or commercial tort claims that were present or relate to anything prior to the sale. All other assets are being sold to SHF “free and clear of all liens, claims, encumbrances and other interests of any kind or nature.” This statement includes any outstanding payroll owed to Agriprocessors employees, taxes, fees and creditor debt. Existing plant employees that are hired by SHF will be provided new employment contracts as if they were assuming new employment.
Judge Kilburg stated that “without an expeditious sale of the assets, there will be substantial diminution in the value of the assets.” Anticipated closing date of the sale is Aug. 3, and SHF is not required to provide more than $800,000 to the bankruptcy trustee for business expenses between now and that date.
Here is the entire sale order, including SGF's declaration. Please click the icon in the viewer's upper right corner to enlarge. Click it again to return to this post:
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