Hershy Friedman’s SHF Industries, LLC, the owner of the Agri Star glatt
kosher meat processing plant in Postville, Iowa – the former home of the
Agriprocessors glatt kosher slaughterhouse that was once owned by the
Rubashkin family – has finally settled a claim against it by Allamakee County
for hundreds of thousands dollars of property taxes left unpaid by
Agriprocessors, which declared bankruptcy in late 2008.
Hershy Friedman at Agri Star in 2009
Agri Star Pays Finally Hundreds Of Thousands In Back Property Taxes – Less Interest
Shmarya Rosenberg • FailedMessiah.com
Hershy Friedman’s SHF Industries, LLC, the owner of the Agri Star glatt kosher meat processing plant in Postville, Iowa – the former home of the Agriprocessors glatt kosher slaughterhouse that was once owned by the Rubashkin family – has finally settled a claim against it by Allamakee County for hundreds of thousands dollars of property taxes left unpaid by Agriprocessors, which declared bankruptcy in late 2008.
SHF made a lump sum payment to Allamakee County of $604,720.73, the Waukon Standard reported. The settlement covers all the back taxes SHF owed, but does not include interest of over $434,000 on those back taxes or the more than $168,000 the county had to spend in legal fees to sue SHF to get its money.
The County offered SHF a similar settlement in May 2013 during mediation. SHF initially refused the offer but then suddenly changed course last week and settled.
SHF Industries initially claimed that since it had purchased Agriprocessors free and clear of all liens, it did not owe Agriprocessors’ back property taxes.
Allamakee County claimed that SHF did owe the tax bill amassed by Agriprocessors and it should have been aware of that because the tax liens were attached to the property’s title. The county also claimed that the tax liens were not covered by the bankruptcy sale of Agriprocessors.
A federal bankruptcy court agreed with the county. The circuit’s Chief Bankruptcy Judge Thad Collins ruled in January 2012 that the property taxes owed to Allamakee County were not negated by the bankruptcy sale.
Then, in July of 2012 Collins ruled that SHF’s claim that the bankruptcy trustee owed the back taxes, not SHF, would have to be decided at trial.