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11-05-2008, 03:43 PM #1
Iowa meatpacker files for bankruptcy protection
Iowa meatpacker files for bankruptcy protection
ASSOCIATED PRESS
7:26 a.m. November 5, 2008
DES MOINES, Iowa – A kosher slaughterhouse in Iowa has filed for bankruptcy protection, blaming a May immigration raid for financial difficulties.
Agriprocessors' move to file for Chapter 11 bankruptcy protection on Tuesday comes a day before the meatpacker was to meet in court with its biggest lender, First Bank of St. Louis.
The bank is seeking to foreclose on the plant in Postville and appoint a third party to oversee Agriprocessors' assets.
The bankruptcy filing says Agriprocessors owes $50 million to $100 million to creditors.
The plant was the site of a May 12 immigration raid in which 389 people were arrested.
A lawyer for the company did not immediately return a call Wednesday seeking comment.
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