Less than two weeks after they were investigated for possible animal cruelty, Pure Prairie Poultry (PPP) in Charles City has filed for Chapter 11 bankruptcy.
PPP filed a petition, signed by CFO George Peichel, with the U.S. Bankruptcy Court for the District of Minnesota on Friday (09.20). According to the petition, the company has between 200 and 999 creditors, assets estimated between $50 million and $100 million, and liabilities estimated between $100 million and $500 million.
On PPP’s list of its 20 biggest creditors holding unsecured claims is the City of Charles City, owed over $500,000, and MidAmerican Energy, owed over $300,000. They are also almost $2 million in debt to Masterson’s Staffing, based in Minneapolis and with an office in Charles City, and over $2.4 million to Tri-State Poultry, which supplies much of the equipment for the chicken processing facility.
The company is also seeking immediate access to post-petition financing of $15 million in “DIP financing” in order to ensure continued operations during this case as it implements a sale process. PPP states that without the non-revolving line of credit, they will “lack sufficient liquidity to ensure uninterrupted operations. Any cessation in operations will, in turn, likely result in immediate liquidation, the loss of more than 138 jobs and severe losses for vendors, customers and creditors.”
An expedited hearing on their PPP’s petitions has been scheduled for 3 pm this Wednesday (09.25) in Minneapolis.
Earlier this month, Pure Prairie Poultry’s methods of slaughtering chickens was questioned by USDA officials who were notified of possible infractions by PETA, who based their allegations on claims by “whistleblowers” who worked at PPP. The company acknowledged there were some issues with their procedures and they were working with the USDA to avoid problems in the future.
Pure Prairie Poultry, initially called Pure Prairie Farms, relaunched the plant, formerly owned by Simply Essentials, in November 2022.
Stay Connected with KCHA News
Add KCHA News as a preferred source on Google to see more local news, weather, and sports in your feed.
Follow us on Facebook for breaking news, severe weather alerts, sports, and more.
