Funding for Agriprocessors approved - KWWL - Eastern Iowa Breaking News, Weather, Closings

Funding for Agriprocessors approved

CEDAR RAPIDS (KWWL) -- Funding for Agriprocessors Inc. has been approved by a New York bankruptcy court.

This money will allow the kosher meatpacking plant to reopen.

Joseph Sarachek, the court-appointed bankruptcy trustee said the court approved a $2.5 million advance.

The funds come from the First Bank Business Capital of St. Louis.

Production could begin later this week.

This decision will allow Agriprocessors to resume the processing of its inventory of about 750,000 chickens and hens through Jan. 9

First Bank is owed about $34 million by Agriprocessors and has foreclosed on the company, but without the advance the chickens would likely starve and become a liability instead of an asset.

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