Bids for Agriprocessors fall short of creditors' hopes - KWWL - Eastern Iowa Breaking News, Weather, Closings

Bids for Agriprocessors fall short of creditors' hopes

by Bryan Goettel

CEDAR RAPIDS (KWWL) - Agriprocessors is closer to having new ownership.

Monday, Three companies bid on Agriprocessors at its bankruptcy auction.

It all stems from the immigration raid at its Postville plant this past May that netted 389 arrests.  Federal and state charges followed putting the company in dire financial straights.

Last November Agriprocessors filed for bankruptcy.  Since it could not find a buyer, Agriprocessors went on the auction block.

Monday's auction in Cedar Rapids leaves more questions than answers about the future of Agriprocessors.

And while a judge will discuss the bids Tuesday, we may not reach a resolution until sometime in April.

After hearing bids from three different companies, bankruptcy trustees determined Natural Sources came in with what they called the highest and best bid at $5.5 million.

But that number is far less than the 20 to 40 million dollars creditors want, meaning that bid could be vetoed.

Following the formal auction, two creditors submitted bids on certain assets.

MLIC Holding, an affiliate of Met Life, put in a credit bid of $6.5 million on the real estate to protect its loan to Agriprocessors.

While First Bank bid $20 million for equipment and other collateral to secure what Agriprocessors owes it.

If Natural Sources or another company doesn't submit a bid acceptable to creditors, it would eventually be up to the bank to continue operating or close the plant down.

T5 Equity Partners and Kosher Standards were the other two companies to submit bids Monday afternoon.

Creditors and bankrupty trustees will make a decision during a hearing Tuesday.

A judge will then decide whether to approve the sale of the company, but one lawyer says this auction process could last for days, if not weeks.

Online Reporter: Bryan Goettel

Powered by Frankly