South Texas beef processor filed for Chapter 11 protection

2 years 8 months 1 day ago Thursday, January 24 2019 Jan 24, 2019 January 24, 2019 3:00 PM January 24, 2019 in News - AP Texas Headlines

CORPUS CHRISTI, Texas (AP) - A cash-strapped South Texas beef processor has filed for Chapter 11 bankruptcy protection while it sells off its assets.

According to a statement issued Thursday, Corpus Christi-based Sam Kane Beef Processors says its receiver decided to file for bankruptcy protection to assure a speedy sale to a new owner while protecting creditors and employees.

The slaughterhouse had agreed in a July federal court settlement to pay nearly $38 million over 18 months that it owed to livestock sellers. Federal law requires next-business-day payment for livestock purchases. That was after the company was accused of violating a January 2017 order by the U.S. Department of Agriculture requiring the slaughterhouse to make payments when due.

The Corpus Christi Caller-Times reports the slaughterhouse, which employs 726 workers, owes 100 to 199 creditors.

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