Motion hearing scheduled for Pure Prairie Poultry

Motion hearing scheduled for Pure Prairie Poultry

The day's local, regional and national news, detailed events and late-breaking stories are presented by the ABC 6 News Team, along with the latest sports, weather updates including the extended forecast.

(ABC 6 News) — A motion hearing is scheduled for Thursday in a case involving Pure Prairie Poultry, over a month since the closure of its Charles City plant.

Since the closure, hundreds of creditors, including former employees, have not been paid.

The company filed in court on Oct. 21 to enter into an assignment with Light House Management Group to allow Light House to act on their behalf. This means Light House would be able to liquidate, sell or operate the property, sign all documents that would allow for sale, and more.

Under an assignment, there is typically a 30-day window, or stay, where creditors are prevented from taking certain actions against their debtor, such as commencing or continuing a judicial, administrative or other action to recover a claim which arose before the assignment.

“There’s only so many fish in the pond, and everyone’s trying to catch the most fish, which is the most money, so on some level they’re trying to sort of elbow out all of the other creditors,” University of Minnesota Law professor Edward Adams said.

In a motion hearing filed Oct. 30, Lighthouse asked the court to extend that stay to March 31, 2025, because they are just getting started on executing their duties, court documents said.

The group said they are working on identifying all of the company’s creditors and taking possession of the property and need more time to continue this process, according to court documents.

“Some of us are only owed a couple thousand, some are owed several thousand, some are owed way more than that. Then you have creditors that are owed millions,” Former employee, Jeremy Schmidt, said.

The motion is also seeking to terminate contracts Pure Prairie Poultry currently has with its grower partners because the company could no longer afford to feed the chickens, and according to court documents, any other fees and costs would be burdensome to the assignment.

RELATED: Growers for Pure Prairie Poultry say their chickens are starving

Former employees said they are still not confident they will ever see the money they are owed.

“I don’t have a whole lot of faith that we’re going to see the money. and I know that a lot of the creditors aren’t gonna or the contractors. which is truly a shame because I know a lot of these are north Iowa contractors,” Schmidt said.