Agriprocessors trustee requests case conversion to liquidate assets

By Alice Popovici

New York, Sept. 15 - Agriprocessors, Inc.'s Chapter 11 Trustee requested court authorization to covert the company's Chapter 11 case to Chapter 7 for liquidation, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Iowa.

"The remaining assets of the estate need to be liquidated for the benefit of creditors," and "that liquidation should occur in the context of a Chapter 7 case" to minimize the "administrative burden to the estate," the motion stated. "[The company] has no business operations to reorganize under Chapter 11."

According to the motion, Joseph E. Sarachek, who was appointed as trustee in November 2008, after extensive efforts to market the company, filed a motion in June to sell substantially all of its operating assets.

The sale of the assets to SHF Industries, LLC was approved in July.

Agriprocessors, a Potsville, Iowa-based kosher meat and poultry packer and food processor, filed for bankruptcy on Nov. 4, 2008 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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