Court proceedings holding up debt repayment plan for Pure Prairie Poultry
(ABC 6 News) — Pure Prairie Poultry is fighting several cases in court, including an involuntary Chapter 7 bankruptcy filing made by four of its creditors, which halted proceedings in its debt payment case.
Pure Prairie Poultry owes between $100 million and $500 million to hundreds of creditors, according to court documents.
The debt payment case was filed in Minnesota, but the bankruptcy filing in federal court supersedes the debt payment case.
“Once bankruptcy occurs it kind of consumes everything, it takes over everything else, and all the other stuff gets set aside,” Edward Adams, a professor at University of Minnesota Law School, said.
Former employees said they received letters in the mail on behalf of Pure Prairie Poultry, asking them to sign a motion to dismiss, so the company could move forward with their original debt payment plan.
But many former employees were not interested in signing, because they don’t believe they will ever get their final paychecks.
“They have no ambition to pay us what they owe us. Which is a shame because the hourly colleagues were the ones that put the blood sweat and tears into it,” Jeremy Schmidt, a former employee, said.
But even if they never see the money, some just hope to see accountability.
“I’m just praying there’s accountability. That’s all I want,” Schmidt said. “I would happily give up all the money they owe me if somebody’s held accountable.”
The most recent motions in the bankruptcy case have been taken under advisement. The case in Minnesota is halted until a decision is made in the federal case.