Postville, IA – Is The End Near? Bank Wants To Confiscate All Agriprocessors Assets Citing $35 Mil. Loan Default

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    Postville, IA – A St. Louis-based bank is seeking all of Agriprocessors’ collateral, claiming the slaughterhouse defaulted on a $35 million loan.

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    First Bank says in a lawsuit filed Thursday in U.S. District Court in Cedar Rapids that Agriprocessors overstated how much money it has available and that the company hasn’t met its loan payments.

    The suit names Agriprocessors owner Aaron Rubashkin, his son and former CEO Sholom Rubashkin and slaughterhouses in Postville, Iowa, and Gordon, Neb. In addition to livestock and plant equipment, the suit includes the Rubashkins’ personal property as collateral.

    If the bank prevails, the suit says it will hold foreclosure sales of the company’s assets.

    Plant owes fees to city
    Meanwhile, it was reported today that Agriprocessors, Inc. owes Postville nearly $70,000 in overdue fees for the use of a city-owned wastewater treatment lagoon.

    Managers at the kosher meat-processing have not paid their monthly bill in two months, said Postville City Administrator and Clerk Darcy Radloff.

    Agriprocessors owes the city $69,603.78 for the use of the lagoon, which sits behind the plant and is owned partially by the U.S. Department of Agriculture.

    Plant managers did, however, pay $5,771 this week in late utility bills, Radloff said.

    Radloff said the overdue bills may not necessarily be a sign of the plant’s recent financial hardships, because the city has always struggled to keep Agriprocessors up-to-date on its bills.

    “It’s nothing new to us,” Radloff said. “Agri has always been slow with paying. It’s a constant struggle to work with them.”

    But the bill troubles coincides with a nearly $10 million fine proposed this week by the state labor department for an assortment of violations. Agriprocessors also is the subject of numerous federal and state investigations, and a civil lawsuit filed in May in U.S. District Court.

    City officials are nonetheless concerned about the plant, the single largest employer in Allamakee County. Financial strains on the company could easily hurt local farmers, businesses and co-ops, Radloff said.


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    29 Comments
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    JoeFlix
    JoeFlix
    15 years ago

    That hurts.

    nitpickin
    nitpickin
    15 years ago

    I quess the US Gov. likes to create moe job loss. They close their eyes to all the other illegals.

    Anonymous
    Anonymous
    15 years ago

    You ask if the end is near? Do you know how long it takes for a foreclosure action to be granted and enforced. It’ll take years for this action to resolve in the way the Bank wants, especially if Agri will fight tooth and nail, as they have in the past with other lawsuits. The end is yet to be near.

    Anonymous
    Anonymous
    15 years ago

    How in the world can they afford to pay when everu one ois knocking nails in their coffin.

    kj
    kj
    15 years ago

    why arent the aroinim comming to the rescue??

    Anonymous
    Anonymous
    15 years ago

    what a shame with all this meat will go higher and higher not only the family, and the workers will suffer but the jewish community……i bought a small peice of meat for the chullent and paid $8 for it what will things cost now…….. will not be able to afford to make chullent with meat in it…………….Chicken is very high as well????? every simcha will cost much more everything in the life of frum jews will now be boyond reach………i think people will start thinking about useing meat with hechsherim that costs less……..there is a meat store in flatbush that the prices are much lower under hashgacha but mid west meat………. i think people will actually start going there.whoknows but something has to be done………………

    Anonymous
    Anonymous
    15 years ago

    God Forbid this place should close down.

    So many Yidden have the only Parnassah from this place.

    I guess the locals are finally getting what they wished for all these years.

    Yet another reminder that we are in Golus and that the smiling Goyim hate us even when we help them.

    I hope the our ‘friends in Sullivan County won’t do this to us in the Catskills.

    bail out
    bail out
    15 years ago

    they can bail them out for only about 50mil that is alot less than the 30bil aid is getting

    Anonymous
    Anonymous
    15 years ago

    why is vosizneiass reporting negative news about agri all the time wouldnt it be nice if u stay queit

    Anonymous
    Anonymous
    15 years ago

    “Close their eyes to all other illegals”?

    AGRI may have been the first raid of its size in recent history, but there have been two more, both in goyishe companies.

    This has nothing to do with antisemitism. It has to do with consequences to behavior, just as we teach our children.

    Besides this article is about their not paying their loan, not about the raid on their plant. You don’t pay, they take your collateral. Or are we going to call the banks anti Semites because they have the audacity to expect payment?

    omygoash
    omygoash
    15 years ago

    no body will buy the company its not worth that money only if can process kosher meat I guess the bank will have to run the company as thedy do with empire.

    Anonymous
    Anonymous
    15 years ago

    expect a kosher meat shortage.
    Aarons is by far the largest producer of kosher poultry and meats.
    here comes the price gouging!

    Those Who Know, Know.
    Those Who Know, Know.
    15 years ago

    The end isn’t near….The end is here.

    They are done. They have completely ceased all operations.

    The meat shortage starts now….start stocking up, while you still can.

    moishe says
    moishe says
    15 years ago

    hashem yyiracheim on them

    we all need them every jew keeping kosher needs them to keep competition and to keep kosher meat around
    by the way you dont see the oher companies in the news like agri ? why
    the same reason you dont see the negative stories about obama

    the news comapnies are antisemites and love to get the jews

    why did theyhave to march shalom around in chains like a common murderer why could they not ask his attorny to have him brought in and be charged like they do with many others

    because they want the publicity making him look like a common murderer

    go google the other comapnie that had more workers arretsed and see if the feds or the state will do the same to those executives and bring the same penalities and see if the local newspapers will carry all the same stories
    the answer is no

    even if you hat the rubashkins for whatever reason . this is just plain antisemitisim against frum yidden (caused by peta yemach chemom and the unions)

    and dont think it cant happen to you

    may hashemhave mercy on us all

    murray
    murray
    15 years ago

    Vegitarian cholent, veggie Kishka- get used to it!

    Anonymous
    Anonymous
    15 years ago

    None of this would have taken place if only they had observed the laws of the land. Because someone else violates the law does not make it right.

    Tzaddik ben Torah
    Tzaddik ben Torah
    15 years ago

    It is time for some well-to-do ehrliche shomrei Torah umitzvos to start a new company.Perhaps wealthy people from frum kehillos can pool their resources and start a new honest kosher business. The end is not here. It may be THEIR end,but we’ve had enough bad publicity.

    Meatloaf
    Meatloaf
    15 years ago

    Don’t worry about the anti-semitin. Rubashkin is doing a fine job of creating them. The pictures of his farbregen celebrating his release on bail are all over Iowa and people are really angry. No remorse. No regrets. No “I’m sorry for the pain and suffering I caused.” Just a picture of a bunch of drunks swilling vodka and singing and dancing because Shalom Mordechai is out on bail. Mazal tov Shalom, you just added about 10 years to any sentence the court may impose.

    Anonymous
    Anonymous
    15 years ago

    The Bank has the plant as collataral and the family Rubashkins personal property as collateral. If you can’t pay a loan, even if its 35 million you will lose your house!!
    Someone hopefully will buy the plant and keep the production and jobs safe.
    Have the shochtime been paid recently??