Agriprocessors bankruptcy case to be heard in Iowa
Posted: Saturday, December 13, 2008
DES MOINES, Iowa (AP) -- A federal bankruptcy judge has ordered the Chapter 11 bankruptcy case of a kosher meatpacking company moved from New York to Iowa.
The judge issued the order Friday afternoon, moving the case to the U.S. District Court for the Northern District of Iowa, Dubuque division.
It grants a motion filed by First Bank Business Capital Inc., one of Agriprocessors Inc.'s creditors. Court documents said the slaughterhouse, which operates a plant in Postville, owes St. Louis-based First Bank at least $33 million.
Labor Commissioner David Neil also argued to have the case moved to Iowa. In an affidavit, he said Agriprocessors potentially owes Iowa more than $10 million in civil penalties and back wages to workers.
"That's where it should be handled at, that's where the debts are owed and that's what makes sense," he told The Associated Press after hearing the order was granted. "I think it's certainly a step in the right direction."
Telephone calls to numbers listed in court records for Agriprocessors' attorneys went unanswered.
Neil said he believes Agriprocessors has contested two notices of civil penalties filed against the company.
According to the affidavit he filed last month, those civil penalties include allegations of more than 99,000 illegal deductions taken from employees' paychecks from January 2006 to June 2008 for a total of about $10 million.
Neil said in court records that the company also owes about $265,000 in past-due wages to employees, and could owe another $230,000 in past-due penalties to the Iowa Occupational Health and Safety Administration.
In addition to civil penalties and fines, Neil pointed out in the affidavit that the company faces allegations of more than 9,300 child labor violations in Iowa's state court system, and if convicted could face fines of up to $625 on each count.
The state action came after immigration agents raided the plant in May, arresting 389 workers. Last month, a federal grand jury also returned a 12-count indictment against the slaughterhouse and some managers.
The judge issued the order Friday afternoon, moving the case to the U.S. District Court for the Northern District of Iowa, Dubuque division.
It grants a motion filed by First Bank Business Capital Inc., one of Agriprocessors Inc.'s creditors. Court documents said the slaughterhouse, which operates a plant in Postville, owes St. Louis-based First Bank at least $33 million.
Labor Commissioner David Neil also argued to have the case moved to Iowa. In an affidavit, he said Agriprocessors potentially owes Iowa more than $10 million in civil penalties and back wages to workers.
"That's where it should be handled at, that's where the debts are owed and that's what makes sense," he told The Associated Press after hearing the order was granted. "I think it's certainly a step in the right direction."
Telephone calls to numbers listed in court records for Agriprocessors' attorneys went unanswered.
Neil said he believes Agriprocessors has contested two notices of civil penalties filed against the company.
According to the affidavit he filed last month, those civil penalties include allegations of more than 99,000 illegal deductions taken from employees' paychecks from January 2006 to June 2008 for a total of about $10 million.
Neil said in court records that the company also owes about $265,000 in past-due wages to employees, and could owe another $230,000 in past-due penalties to the Iowa Occupational Health and Safety Administration.
In addition to civil penalties and fines, Neil pointed out in the affidavit that the company faces allegations of more than 9,300 child labor violations in Iowa's state court system, and if convicted could face fines of up to $625 on each count.
The state action came after immigration agents raided the plant in May, arresting 389 workers. Last month, a federal grand jury also returned a 12-count indictment against the slaughterhouse and some managers.
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Joe wrote on Dec 13, 2008 8:57 AM: