Cedar Rapids Weather
'A Lot of Pain' in Postville After Bankruptcy
POSTVILLE - Agriprocessors has filed for bankruptcy protection to escape foreclosure by one large creditor.
That filing Tuesday night in New York City put a scheduled federal hearing in Cedar Rapids Wednesday on hold. One St. Louis Bank claims Agriprocessors defaulted on a $35-million loan. Court documents say the company estimates its total debt at $50 to $100-million. One Cedar Rapids bankruptcy attorney says you need more details to know if Agriprocessors can successfully reorganize. "In bankruptcy there's two tests...are your assets worth more than liabilities...it appears Agriprocessors has more assets than liabilities...the second test is can you pay your bills," said Tom Fiegen, bankruptcy attorney. Agriprocessors claimed assets ranging between $100 and $500-million. The company's biggest unsecured creditors are a Des Moines staffing company and Weyerhaeuser Paper Company of Chicago. Both are owed more than $800,000. Agriprocessors has seen many changes over the past year. We don't know what the staffing levels are like inside the plant. But if you talk to the people in line at the food pantry, the number of workers here is dwindling. Every Wednesday at 2:00 p.m., the Postville food pantry opens up. Regulars here say the vast majority of people in line work at Agriprocessors. On Wednesday though, the line was much shorter than usual. People in line say that's because many of those that work at the plant have moved away. Tie that with the bankruptcy, and people here say there's little confidence in the future. "Postville's not going to go back to what it was 20 years ago. We don't know what it's going to end up being. But right now, there is just a lot of pain," said Deacon Pat Malanaphy, Postville Food Bank. More Good Stuff |
What's On KCRG
Most Popular >> |
Conversation Guidelines
Be Kind
Don't use abusive, offensive, threatening, racist, vulgar or sexually-oriented language.
Don't attack someone personally. Keep it civil and be responsible.
Share Knowledge
Be truthful. Share what you know and what you are passionate about.
What more do you want to learn? Keep it simple.
Stay focused
Promote lively and healthy debate. Stay on topic. Ask questions and give feedback on the story's topic.
Report Trouble
Help us maintain a quality comment section by reporting comments that are offensive. If you see a comment that is offensive, or you feel violates our guidelines, simply click on the "x" to the far right of the comment to report it.
read the full guidelines here »
Commenting will be disabled on stories dealing with the following subject matter: Violent crime, sexual abuse, Amber Alerts, Operation Quickfinds and suicides.
Most Popular >>