Corpus Christi, Texas-based Sam Kane Beef Processors LLC has filed for Chapter 11 bankruptcy in the Southern District of Texas “to facilitate the ongoing sales process” of its assets and to “assure the fair treatment of our creditors and employees.”
In the 27-page filing, Kane Beef said it had between 100 and 199 creditors to repay, and reported assets and liabilities that each total $50 million to $100 million. Retired Corpus Christi bankruptcy judge Richard S. Schmidt, who was appointed receiver for Kane Beef three months ago, said the company filed bankruptcy because it intends to sell, reports the Corpus Christi Caller Times.
“The receiver made the determination that bankruptcy is the best implementation method to assure a speedy sale and transfer of Sam Kane’s assets to a new owner,” says Kane Beef.
Kane Beef argued in additional court papers Wednesday that one of its lenders, Marquette Transportation Finance LLC, failed to come through with money needed to purchase cattle and make payroll for Kane’s 726 employees, the Times notes.
The company has engaged Okin Adams LLP as legal counsel, The Claro Group as financial advisor and Gordian Group as investment banker.
Kane Beef’s brands include Texas Star Beef and Republic Reserve. It supplies retailers including H-E-B, Publix and Rouses.