Agriprocessors auction still undecided - KWWL - Eastern Iowa Breaking News, Weather, Closings

Agriprocessors auction still undecided


by Brady Smith

CEDAR RAPIDS (KWWL) -- The city of postville continues its wait... as Agriprocessors still sits on the auction block.

Three companies entered bids on the bankrupt kosher meatpacking plant Monday, but creditors said those bids just weren't enough to cover their losses.   The bids went up quite a bit Tuesday, but still no decision.

The day ended with one of the two creditors that have bid on certain assests of Agriprocessors -- First Bank -- saying they're not pleased with how negotiations are going.  Even the judge himself voiced disappointment in not being able to reach a conclusion Tuesday.

Proceedings Tuesday morning ended with 2 companies upping their bids on Agriprocessors
Kosher Standards lead with $15.7 million and Natural Sources LLC bid about $15 million.  However, those bids were made on the condition that the 2 creditors -- First Bank and Metropolitan (also known as MLIC) would walk away from bidding.

One thing that's importaint to note about this case is it's complexity.  One attorney we spoke with Tuesday morning said there are a lot of numbers associated with a major company like Agriprocessors.  That makes it difficult for bidders to come up with firm numbers on any offers they might make.  In the courtroom we also overheard one attourney say this is one of the most curious auctions he's ever seen.

When court reconveined Tuesday afternoon, some of the bidders told the judge there's simply more work to be done in order to come to a solution that works for all the players.  It was a very brief interaction lasting only about 15 minutes.

For now it seems things are at a stand-still for Agriprocessors.

The judge says he'll clear a time next week to continue considerations, though there's no specific day set at this time.

Onilne Reporter:  Brady Smith

Online Producer:  Dani Blecha

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