Kane Beef Up For Auction Wednesday
Uncertainty continues to swirl around Kane Beef Processors. Some 725 workers at the south Texas beef processing facility have been furloughed since last week after a deal to sell the company fell through.
Eight potential buyers submitted bids to buy the Corpus Christi, Tex., company, with one unnamed company emerging as the best offer. The top bidder, however, did not have the finances to close the deal, according to retired Judge Richard S. Schmidt, the court-appointed receiver for Kane Beef.
Following the collapse of the private sale, Kane Beef asked the court for permission to sell the company at auction.
Kane Beef entered receivership in October after accumulating at least $38 million in debts to cattle suppliers.
In its 27-page bankruptcy filing, Kane Beef said it had between 100 and 199 creditors to repay and listed assets of between $50 million and $100 million, along with liabilities of between $50 million and $100 million.
Kane Beef processes roughly 270,000 head of cattle from about 30 feedyards annually. While most of Kane’s beef is distributed in Texas, it also exports beef to various countries. Cattlemen say the closure of Kane Beef could be a devastating blow to the south Texas beef industry.