Agriprocessors seeks approval of $2.5 million in emergency advances needed to avoid shutdown

By Caroline Salls

Pittsburgh, Dec. 1 - Agriprocessors, Inc. requested court approval to use up to $2.5 million of emergency advances from First Bank Business Capital, Inc. through Dec. 12, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

According to the motion, the financing will fund critical operating expenditures, including processing of the company's inventory of 750,000 chickens and hens, provide a deposit to its utility provider and fund the cost to secure appropriate insurance for its real and personal property.

Agriprocessors said its trustee currently has no unencumbered funds to administer the company's Chapter 11 case, and the company has not functioned for almost two weeks.

However, the company said asset value and jobs would be lost in a complete shutdown.

Interest will be Prime rate plus 325 basis points.

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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