Agriprocessors creditor asks court to move bankruptcy case to Iowa

By Caroline Salls

Pittsburgh, Nov. 6 - Agriprocessors, Inc. secured creditor First Bank Business Capital, Inc. asked the U.S. Bankruptcy Court for the Eastern District of New York to move its Chapter 11 bankruptcy case to the Northern District of Iowa, Dubuque division, according to a Thursday filing with the New York Eastern court.

According to the motion, the company's principal assets, including all of its production facilities, are located in Postville, Iowa.

In addition, First Bank said a vast majority of Agriprocessors' employees and financial records are in Iowa.

The bank said Agriprocessors' only presence in New York is a leased warehouse facility in Brooklyn that contains only an estimated 4% to 7% of the company's inventory.

"This bankruptcy case does not involve a national business with a myriad of creditor constituencies located across the country," First Bank said in the motion.

"The debtor's assets, operations and creditors are centered in one location, which is also the most convenient forum for most of the parties in interest."

Agriprocessors, a Brooklyn, N.Y.-based kosher meat and poultry packer and food processor, filed for bankruptcy on Nov. 4. Its Chapter 11 case number is 08-47472.

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