Postville, IA - Judge Gives Banks Access To Agriprocessors. Bank: Plant To Shut Down Monday if No Electricity Payment.
Postville, IA - A lender seeking control of Agriprocessors Inc. [reported by VIN News] says the meatpackerâ€™s finances are so dire that â€śmillions of chicks and chickens (are) in danger of starving to death.â€ť
Chief U.S. District Judge Linda Reade, after a telephone hearing Friday, gave Atec Liquidations of St. Louis limited powers to oversee Agriprocessors in Postville and a sister plant in Gordon, Neb., to make sure that assets are not diminished before an action filed Thursday in Cedar Rapids can be settled.
First Bank Agriprocessors complaint click here
The lenderâ€™s lawsuit said the bank has been told that Agriprocessorsâ€™ electricity will be cut off if it doesnâ€™t pay $188,000 that is past due and a $88,000 deposit Monday.
â€śThe termination of electric service could result in the spoilage of millions of dollars in fresh and frozen meat products in the borrowersâ€™ inventory,â€ť the lawsuit says. â€śIn addition, First Bank is informed and believes that millions of chicks and chickens in borrowersâ€™ inventory are in danger of starving to death if they are not provided with appropriate feed and water.â€ť
The judgeâ€™s order allows Atec to inspect Agriprocessorsâ€™ facilities to preserve the status quo, including the maintenance of refrigeration equipment so meat does not spoil, keeping animals watered and fed and paying necessary bills.
The Rubashkins were ordered to provide funds to pay the electric bill no later than noon Monday.
A spokesman for Agriprocessors, Chaim Abrahams, said Friday afternoon that it was not clear how the company would be affected by Fridayâ€™s events.
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