Agriprocessors trustee looks to resume auction, consider credit bid

By Caroline Salls

Pittsburgh, June 23 - Agriprocessors, Inc.'s Chapter 11 trustee requested court approval to reconvene the auction for substantially all of its assets to consider an $8.5 million credit bid from replacement debtor-in-possession facility lender SHF Industries, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Iowa.

According to the motion, original DIP facility lender First Bank made a credit bid for Agriprocessors' assets as part of an auction that was held on March 23 and March 24.

However, since that auction, the trustee said First Bank assigned all of its interests in the DIP facility to SHF.

As a result, the trustee is asking the court to reconvene the auction to consider SHF's offer.

Agriprocessors, a Potsville, Iowa-based kosher meat and poultry packer and food processor, filed for bankruptcy on Nov. 4 in the U.S. Bankruptcy Court for the Eastern District of New York. Its case was later transferred to Northern Iowa. Its Chapter 11 case number is 08-02751.

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