Kane Beef Files Chapter 11 Bankruptcy
Sam Kane Beef Processing, LLC, has filed for bankruptcy. The Corpus Christi, Texas-based beef processor filed Chapter 11 in the Southern District of Texas to “facilitate the on-going sales process of the assets of (the company), and to assure the fair treatment of our creditors and employees.”
Kane Beef processes roughly 270,000 head of cattle from about 30 feedyards annually. The company employs more than 700 workers. While most of Kane’s beef is distributed in Texas, it also exports beef to various countries.
The company said in a 27-page filing that 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, according to the court filing.
The company will be able to continue operating while it restructures its finances. It also will be able to void many of its contracts, including agreements with unions and suppliers in addition to real estate leases while under Chapter 11.
According to a report in the Corpus Christi Caller Times, Kane Beef argued in additional court papers Wednesday 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.
Kane Beef is asking the court to set an order authorizing the company to continue paying its workers.
Last week Kane Beef was shut down temporarily when a city inspection discovered unauthorized waste was being discharged into the city’s waste water system. Operations resumed Monday.
Last July, Kane Beef was ordered to pay roughly $38 million the company owed to cattlemen in order to comply with the Packers and Stockyards Act. The company was paying $500,000 a month to settle the matter.
Kane Beef also was working to pay down a $2.4 million debt it amassed with the city of Corpus Christi for utilities.
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