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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.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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