Property problems now plaguing Postville - KWWL - Eastern Iowa Breaking News, Weather, Closings

Property problems now plaguing Postville

Posted:

Postville (KWWL) -- In the wake of Agriprocessors bankruptcy, the Rubashkin family, which owns Agriprocessors, also declared bankruptcy for the property management company it owns, Nevel Properties Corporation.

Nevel Properties filed for chapter eleven bankruptcy protection on Monday, just before the company was set to go to court for a foreclosure hearing.

According to the bankruptcy filing, the company owes dozens of creditors money, including the City of Postville which is owed nearly $30,000 for utilities.

Black Hills Energy recently hung overdue and shut-off notices at several nevel-owned houses Now, with bankruptcy filings, those shut-offs won't happen.

In the filing, Nevel lists estimated assets below $50,000 and liabilities between one million and ten million dollars.

The company's proposed general reorganization council says Nevel Properties can reasonably regroup financially saying.

"In terms of cash flowing, if Agriprocessors is sold to somebody who intends on operating, then the current problem of low vacancy will likely be gone... They will need more workers who need more property to live in and therefore, they'll have resources," Jeff Goetz said.

Citizens State Bank, which is trying to foreclose on around 20 Nevel properties has asked to continue with those foreclosures despite the bankruptcy filing. A preliminary hearing on that matter is scheduled for March 27th.

A more detailed report on Nevel's properties and financial information will be filed within the next two weeks.

Online Reporter:  Jamie Grey

Powered by Frankly