Firm buys Iowa meatpacker debt, making sale likely

By NIGEL DUARA, The Associated Press
5:29 p.m. May 7, 2009

IOWA CITY, Iowa — An unidentified company has bought a $10 million credit line to an Iowa kosher slaughterhouse that went bankrupt after a massive immigration raid, paving the way for the plant's sale.

Agriprocessors Inc. bankruptcy trustee Joseph Sarachek says the buyer on Wednesday purchased the First Bank Business Capital loan "presumably" because it wants to buy the plant in Postville.

The slaughterhouse filed for bankruptcy in November, almost six months after federal immigration agents raided the plant and arrested 389 workers. It has failed to attract a buyer for First Bank, which wants $20 million for the $37 million it had lent Agriprocessors.

Sarachek says at least three parties are pursuing purchase of the plant.

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