Farmland to sell $11 million in assets
Published 12:00 am Saturday, August 31, 2002
A U.S. bankruptcy court authorized Farmland Industries to sell some of its assets last week, a move that would generate about $11 million.
Lawyers representing creditors agreed to the sale. Farmland will have an auction for the assets Sept. 9, and report the results to the court the next day.
The assets on the list for sale are:
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– A fertilizer warehouse in Memphis, Tenn., Port Lavaca, Texas and Greenville, Miss.
– A 32-mile segment of pipeline in southeast Kansas.
– Farm supply stores in Iowa, Mississippi and Louisiana.
– Inventory from the warehouses and stores.
Farmland, the largest cooperative in the nation, filed for Chapter 11 bankruptcy May 31. The bankruptcy procedure gives the co-op 120-days to come up with a reorganization plan to restore profitability, protecting its assets from creditors.
Once the 120-day period is past, the creditors may enter a reorganization plan, or liquidating plan, to the court.
Before the bankruptcy, Farmland promised to resume Albert Lea operations once negotiations with insurance companies over the damage on the old plant in a July 2001 fire were settled. In a press conference at the bankruptcy filing, Chief Executive Officer Bob Terry said that profitable refrigerated meat production &045; a segment that included the Albert Lea operation &045; would be the core of a reorganized co-op, and would not be contracted.