Agriprocessors Ramping Up Production

POSTVILLE, IA — Bankrupt kosher meatpacker Agriprocessors is ramping up production of poultry and taking steps to reopen its beef lines to meet demands for the upcoming Passover season.

Joseph Sarachek discussed the steps in a prepared statement Wednesday discussing his desire to preserve the company’s role as a leader in the kosher meat industry. His company, Triax Capital Advisors, was appointed to oversee the company’s operation in bankruptcy by a federal judge.

“By way of underscoring our confidence in the future, we have placed new eggs for growing chickens which will allow us to meet increased demand during the upcoming Passover season,” Sarachek said. “We are also taking steps to reopen the beef lines so that the plant is processing meat for Passover as well.”

Sarachek hopes to find a buyer for the plant through a competitive bidding process. He said reopening the company’s production lines and supplying customers is key to the sale process.

About a dozen interested bidders have come forward, Sarachek said, and all would like to continue production.

In an open letter to clients, Sarachek portrayed the company has having motivated, dedicated employees working with veteran meat industry executives Alan Glueck, Arnie Mikelberg and Marshall Samler.

“Together, we are reopening up many of Agri’s production lines, ensuring that when this plant is sold to new owners it will have the means of assuming quickly its dominant position in the marketplace,” Sarachek said.

Some customers have already begun returning, according to Sarachek.

Agriprocessors filed for bankruptcy protection in November after First Bank Business Capital of St. Louis, its primary lender, commenced foreclosure proceedings at the end of October. The company blamed the impact of a federal immigration raid in May which resulted in the arrest or detention of nearly 400 of its employees.

The bank was owed about $32 million by Agriprocessors when it commenced foreclosure. It has loaned millions more to keep Agriprocessors in operation with bankruptcy court approval.