POSTVILLE, IA — The sale of Agriprocessors in Postville was approved this morning by U.S. Bankruptcy Court Judge Paul J. Kilburg to a newly formed company.
SHF Industries, a company formed in May by Canadian plastics manufacturer Hershey Friedman and his son-in-law Daniel Hirsch, is set to become the company’s new owners. Friedman has indicated that he will continue the plant as a meatpacking operation, and will continue to focus on kosher products.
Sale of Agriprocessors Approved by Bankruptcy Court
POSTVILLE, IA — The sale of Agriprocessors in Postville was approved this morning by U.S. Bankruptcy Court Judge Paul J. Kilburg to a newly formed company.
SHF Industries, a company formed in May by Canadian plastics manufacturer Hershey Friedman and his son-in-law Daniel Hirsch, is set to become the company’s new owners. Friedman has indicated that he will continue the plant as a meatpacking operation, and will continue to focus on kosher products.
An initial bankruptcy auction failed to produce a buyer in March when two key holders of company debt made bids on their own interests. SHF Industries was able to work out deals with both the key debt holders — First Bank Business Capital and MLIC Mortgage — in May and June. SHF, according to documents released today by the court, also advanced funds to the estate in an amount in excess of $1.8 million.
SHF’s total offer for sale and transfer of assets was $8.5 million. The offer does not include leased equipment, tax refund claims, frozen inventory or commercial tort claims that were present or relate to anything prior to the sale. All other assets are being sold to SHF “free and clear of all liens, claims, encumbrances and other interests of any kind or nature.” This statement includes any outstanding payroll owed to Agriprocessors employees, taxes, fees and creditor debt. Existing plant employees that are hired by SHF will be provided new employment contracts as if they were assuming new employment.
Judge Kilburg stated that “without an expeditious sale of the assets, there will be substantial diminution in the value of the assets.” Anticipated closing date of the sale is Aug. 3, and SHF is not required to provide more than $800,000 to the bankruptcy trustee for business expenses between now and that date.
Menachem
A sad day in history..
Hashgocho the same?
Mazal Tov! I am thrilled the families who live there, will now have an income, and life can resume.
I am sure the Rubashkin family will guide and work with the new owners, and make a salery too.
The question is …. will it be the same Hashgocho? Technically, nothing should change.
Anyone know?
yakov katz
“This statement includes any outstanding payroll owed to Agriprocessors employees”
hope all the yidden that worked their are not owed mas amounts of money……..
A. Lawyeer
Old employees’ salary has a “priority” in bankruptcy court. They will get paid from any “old assets”, if any, after lienholders are paid off. This will be a seperate issue fron new salaries owed or paid to employees who work for the new company, or who worked for the old company after the bankruptcy was filed.
CN
Hopefully they will resume full production soon and the price of kosher meat will go down.
Chaim
What will be now with the Jewish community there? Will it be a Satmar Yeshiva?
Zev
Lets me realistic, the Rebbe/Lubavitch was not in control of the plant for a few years now. The OU ran it and they did everything they can to get rid of the Rubashkins. Personally I am going to look for other Hechsher foods and not purchase OU or Star K if I can help it. You watch and you will see how they will bring in misnagdic shochtim, the kind that passels Chabad and they will bring in misdagdic mashgichim. The anash that live there are going to have to move, not all at once, because they need them now. But evetually…
Bad News
From this report it seems
1- this plant wont be lubavitcher meat anymore
2- The Lubavitchers (and the Yeshiva) will eventualy move out.
The Misnagdim will be making money off The lubavitch started Plant!!!
tzedaka
Who will cover all the meat and money tzedaka that was made from the plant?
redicules
The Misnagdim are taking a 100 Mil. dollar property from Lubavitch for just a few Mil!!
Typical
Interesting that people are complaining about the so called “misnagdim”. A number of Lubavitchers could have formed a committee and bought the plant, yet nobody within Lubavitch did anything about it.
Paul Freedman
I don’t understand the opinions here–the owner was Chabad and the OU did not interfere with his operation of the plant. He was shut down by the secular state authorities for matters that had nothing to do with religious concerns.
?