The Official Committee of Unsecured Creditors in the Pro’s Ranch Markets’ bankruptcy case recently retained Freeborn’s Bankruptcy and Financial Restructuring Group to help maximize their recovery in this Chapter 11 case. Specifically, Freeborn possesses considerable experience representing official committees of unsecured creditors in chapter 11 cases involving retail grocers, food service companies, and food distribution companies. Because the attorneys in Freeborn’s Food Industry Team routinely represent these same types of food industry clients, we are highly familiar with the issues affecting both debtors and creditors in this space. This allows Freeborn to be incredibly effective when it comes to maximizing value for creditors.
Monthly Archives: July 2013
PACA Trust Litigation Alert
PACA Trust Litigation Alert
On May 31, 2013, a civil action was filed in New York against Robert Guiliano d/b/a Guiliano Brother’s Produce in an effort to collect about $287,100.00 in alleged PACA trust debt.
On June 3, 2013, a civil action was filed in California against Miki’s Farm Fresh Market, Inc. in an effort to collect about $16,200.00 in alleged PACA trust debt.
On June 4, 2013, a civil action was filed in Illinois against FP Drive LLC d/b/a LA International in an effort to collect about $11,100.00 in alleged PACA trust debt.
On June 10, 2013, a civil action was filed in Florida against Alexa Produce, Inc. in an effort to collect about $24,000.00 in alleged PACA trust debt.
On June 11, 2013, a civil action was filed in Massachusetts against Banana Joe’s Farm Stand and Deli, Inc. in an effort to collect about $8,700.00 in alleged PACA trust debt.
On June 14, 2013, a civil action was filed in California against Edgar P. Barajas d/b/a Premier Fresh in an effort to collect about $215,900.00 in alleged PACA trust debt.
On June 19, 2013, a civil action was filed in New York against Southern Hospitality Xanadu LLC d/b/a Southern Hospitality in an effort to collect about $10,700.00 in alleged PACA trust debt.
On June 19, 2013, a civil action was filed in Texas against Farmer’s Fruit and Vegetable Company in an effort to collect about $29,600.00 in alleged PACA trust debt.
On June 20, 2013, a civil action was filed in New York against Lansky’s Operating Corporation d/b/a Lansky’s in an effort to collect about $41,900.00 in alleged PACA trust debt.
On June 22, 2013, a civil action was filed in Florida against Star International Food, LLC in an effort to collect about $7,200.00 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.
Belle Foods Files for Chapter 11 Bankruptcy Protection
On July 1, 2013, Belle Foods LLC filed for Chapter 11 bankruptcy protection in the Northern District of Alabama.
Although Belle Foods presented a top 20 list of unsecured creditors, the business has not yet submitted its full schedules of debts and assets, statement of financial affairs or other required information. The business estimates it owes between $10 million and $50 million in debt and that it holds the same general range in assets.
Belle Foods told the bankruptcy court that its Chapter 11 bankruptcy petition was precipitated by a variety of factors that have led to a deterioration in its business and a lack of liquidity. The debtor cited technical issues with its accounting system during 2012 that led to losses and said it also “experienced issues with its lending structure and relationship.” Additionally, higher payroll taxes in 2013 led to a decline in purchases by the debtor’s customer base, according to documents filed with the court. Furthermore, Belle Foods said it has seen an increased amount of competition in several of its markets from other grocers. With older locations, the debtor explained it has had difficulty competing with the newer grocery stores that have moved into its markets.
Belle Foods is a privately held company that owns and operates a grocery store chain that operates stores under the banners of Belle Foods, Piggly Wiggly and Food World. Combined, Belle Foods LLC states it operates 57 stores in Florida, Georgia, Alabama and Mississippi.
It is not clear from the pleadings how much, if any, PACA debt exists. I will provide more updates as new information becomes available.