Three creditors of a bankrupt kosher meat producer want court hearings moved from New York to Iowa.
First Bank Business Capital filed a motion last week to have court proceedings on the Chapter 11 filing of Agriprocessors moved to Iowa, the Iowa Independent reported. Two more of Agriprocessors’ creditors have since joined the motion, to which the company must respond by Monday. An evidentiary hearing is sheduled for Nov. 25.
Agriprocessors filed for bankruptcy earlier this month soon after First Bank initiated foreclosure proceedings against the company, citing the meat producer’s default on a $35 million loan.
The troubles at Agriprocessors, which began in May when a federal immigration raid led to the arrest of more than one third of the company’s workforce on illegal immigration charges, have rippled through the kosher meat industry, where reports of shortages are mounting.
