Monthly Archives: May 2013

Jason Klinowski Quoted in “AndNowUKnow’s” Recent Article on Pro’s Ranch Markets Bankruptcy

anuk-reg-logoOn May 30, 2013, Eric Anderson of AndNowUKnow published an article discussing the Pro’s Ranch Markets bankruptcy case.

Here is a link to Eric’s article: Pro’s Ranch Markets Files for Bankruptcy with an Anticipated $7,229.773 in PACA Claims.  The article noted that “documents filed with the court note that the company has currently estimated current assets to be between $0 to $50,000 and has estimated liabilities to potentially reach $50 million.”

Quoting Jason, Eric’s article commented upon the Debtor’s asset to debt ratio and warned that:

 “If the Debtor’s Voluntary Petition accurately reflects the amount of assets in the Debtor’s estate, the PACA creditors would be well advised to quickly object to the Debtor’s use of cash collateral and to start working to identify alternative sources of recovery,” Attorney at Freeborn & Peters LLP,Jason Klinowski, tells AndNowUKnow. “These alternative recovery sources could include the Debtor’s bank, the principals of the Debtor, etc.”

Jason Klinowski Quoted in The Packer’s Recent Article on Pro’s Ranch Markets Bankruptcy

the-packerOn Mary 30, 2013, Tom Karst of The Packer published an article discussing the Pro’s Ranch Markets bankruptcy case and the $7.2 million dollars in anticipated PACA trust claims.  Here is a link to Tom Karst’s article: Retailer Bankruptcy Could Involve Millions in PACA Claims.  In case you did not know, “Pro’s Ranch Markets is a Hispanic-oriented grocery chain with stores in seven stores in Phoenix, one store in Las Cruces, N.M., one store in Albuquerque, N.M., and two stores in El Paso, Texas. The grocery chain employs 2,235 employees in four states, according to court documents.”  Tom’s article quoted Jason as follows:

Jason Klinowski, agricultural and food law attorney from the firm of Freeborn & Peters LLP, Chicago, said the grocery chain apparently has a limited pool of assets from which to pay its creditors.

“If the debtor’s voluntary petition accurately reflects the amount of assets in the debtor’s estate, then I think that PACA creditors will be well-advised to quickly object to the debtor’s use of the cash collateral and start looking for alternative sources of recovery.”

Pro’s Ranch Markets – Bankruptcy UPDATE

Pros Ranch MarketAs reported by SeaFax on May 30, 2013 – Pro’s Ranch Markets has not presented full lists of assets and liabilities or statements of financial affairs, but estimates that liabilities are between $10 million to $50 million. Those documents are due by June 11, unless an extension is requested and granted.

Pro’s Ranch Markets did file a motion to establish procedures and to allow claims of Perishable Agricultural Commodities Act (PACA) claimants and Packers and Stockyards Act (PASA) claimants. The motion states the debtors reviewed their records and identified at least 83 potential PACA claimants, owed about $7.2 million in pre-petition claims potentially subject to PACA.

In addition to the PACA claimants, the debtors have certain vendors who may assert claims pursuant to PASA as a result of providing them with beef, swine and poultry products. The debtors do not think they are subject to PASA.

The motion requests that the bankruptcy court enter an order establishing procedures, allowing claims and authorizing the debtors to pay, in their sole discretion, the pre-petition claims of PACA claimants and PASA claimants.  The obvious danger here is that PACA requires each unpaid supplier to share in the distribution of the PACA trust and an order authorizing the debtor to pay claims on a first come first serve basis could prejudice some PACA creditors.

PRM Family Holding Company LLC is the sole member of the other limited liability company debtors. Prodigio Mercado LLC operates three grocery stores located in Phoenix, AZ. Provenzano’s LLC operates four grocery stores located in Phoenix. Pro’s ABQ Ranch Markets LLC operates two grocery stores located in New Mexico, one in Albuquerque and one in Las Cruces. Pro’s ELP Ranch Markets LLC operates two stores located in El Paso, TX. Pro’s ELP Ranch Markets Beverage Company LLC holds the liquor license for Pro’s ELP Ranch Markets LLC. Pro & Son’s LLC holds title to intellectual property owned by the debtors. Pro’s Ranch Markets (CA) LLC acts as the paymaster, manager, internal wholesaler, oversees trucking and distribution, pays all accounts payable and provides employees to all of the debtors’ stores. Collectively the debtors own and operate 11 retail grocery stores and employ approximately 2,235 full time workers in the stores and other locations.

Pro’s Ranch Markets Bankruptcy

Pros Ranch MarketOn May 28, 2013, Pro’s Ranch Markets filed for Chapter 11 bankruptcy protection in the District of Arizona.  Although the company has yet to file its schedules, the Debtor anticipates $7,229,772.85 in pre-petition PACA claims from 83 companies.

To be clear, the Pro’s Ranch Markets bankruptcy involves each of the following entities:

  • PRM Family Holding Company LLC
  • Prodigio Mercado LLC
  • Pro’s ABQ Ranch Markets LLC
  • Pro’s ELP Ranch Markets LLC
  • Pro’s ELP Ranch Markets Beverage Company LLC
  • Pro & Son’s LLC
  • Pro’s Ranch Markets (CA) LLC
  • Provenzano’s LLC

Please check your A/R to see if this case affects you.  If it does, please do not wait to assert your rights.

PACA Trust Litigation Alert!

PACA Trust Litigation Alert

PACA Trust Litigation Alert

On May 13, 2013, a civil action was filed in Connecticut against Rosa Brothers, Inc. d/b/a Guilford Food Center to recover about $34,000.00 in alleged PACA trust debt.

On May 14, 2013, a civil action was filed in Florida against River Sun Fresh LLC, River Sun Produce LLC, and Riverland and Indian Sun LC to recover about $32,500.00 in alleged PACA trust debt.

On May 16, 2013, a civil action was filed in Florida against Causeway Food Group, Inc. d/b/a Food Giant Supermarket to recover about $9,000.00 in alleged PACA trust debt.

Please check your A/R to see if any of these cases affect you.  If they do, please do not wait to assert your rights.

 

Freeborn to Exhibit at United Fresh!

RBCS medium rectangle ad with tom

Please stop by Booth # 840 and visit Jason Klinowski of Freeborn & Peters.  Members of our Food Industry Team will be on hand to greet everyone.  Come see us!

PACA Trust Litigation Alert!

PACA Trust Litigation Alert

PACA Trust Litigation Alert

On April 23, 2013, a civil action was filed in Florida against Old Fashion Honey Corp. d/b/a U.S. Food Logistics in an effort to collect about $465,670.00 in alleged PACA trust debt.

On April 24, 2013, a civil action was filed in California against Producers Choice LLC in an effort to collect about $502,500.00 in alleged PACA trust debt.

On April 24, 2013, a civil action was filed in California against RASC Enterprises, Inc. d/b/a Ranchito Supermarkets in an effort to collect about $8,600.00 in alleged PACA trust debt.

On April 30, 2013, a civil action was filed in Georgia against Atlanta Specialty, Inc. in an effort to collect about $16,400.00 in alleged PACA trust debt.

On May 1, 2013, a civil action was filed in Florida against Florida European Export-Import Company, Inc. in an effort to collect about $108,390.00 in alleged PACA trust debt.

Please check your A/R to see if these cases affect you.  If they do, please do not wait to assert your rights.