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Peanut Processor's Filing Lists $11M in Assets

posted on March 6, 2009


ROANOKE, Va. (AP) -- The peanut processor at the heart of a nationwide salmonella outbreak has nearly $11.4 million in assets and debts of $4.8 million, documents filed in U.S. Bankruptcy Court show.

The Lynchburg-based Peanut Corp. of America shut down and filed for Chapter 7 bankruptcy last month amid growing fallout from the outbreak, which was linked to the company's products and sickened more than 600 people. It also led to one of the largest product recalls in U.S. history, and may have caused nine deaths.

The filing Friday by attorney Andrew S. Goldstein listed 14 lawsuits against the company related to the outbreak. It also listed more than 475 businesses with claims against the company.

In one of the lawsuits, Hartford Casualty Insurance Co. has asked for a ruling on whether its $6 million coverage of Peanut Corp.'s inventory includes salmonella claims.

The documents also listed a $1 million recall insurance policy with AIG.

The only real estate listed in the documents was the company's plant in Blakely, Ga., identified by the Food and Drug Administration as the source of most of the illnesses. It was valued at $2 million, with a $1 million lien. The company also listed $2 million worth of equipment at the plant.

Salmonella also was found in products from Peanut Corp.'s Plainview, Texas, plant. It and a Suffolk, Va., blanching operation were listed as personal property with unknown values.

The company reported about $19.7 million in gross income for the fiscal year that ended last Sept. 30.

The FBI is conducting a criminal investigation of the company, and the company's statement of financial affairs included a $100,000 payment for corporate criminal legal representation.


Tags: news nuts salmonella