Iowa chicken processor petitions court to sell plant
Custom Poultry Processing currently in Chapter 7 bankruptcy
Custom Poultry Processing LLC has filed a motion in bankruptcy court, proposing an auction to sell its closed chicken processing plant in Charles City, Iowa.
The owners believe an asset sale "is the best method for maximizing the return to the bankruptcy estate and returning the facilities to production, thereby raising the possibility of bringing back to work the debtor's laid-off employees," according to the motion. The company was forced to lay off 125 employees when the plant closed in January after creditors filed an involuntary petition for Chapter 7 bankruptcy.
Custom Poultry Processing says it has identified potential buyers for its assets, according to court records, and would like the auction to take place at 9 a.m. on May 26 in the courtroom for U.S. Bankruptcy Court for the Northern District of Iowa in Cedar Rapids.