Login for full access to ABQJournal.com



New Users: Subscribe here


Close

NM plant mulled bankruptcy long before Oct. filing

........................................................................................................................................................................................

PORTALES, N.M. (AP) — An eastern New Mexico peanut butter plant involved in a nationwide salmonella outbreak last year reportedly was preparing for the possibility of filing for bankruptcy for months.

Sunland Inc. filed Oct. 9 under Chapter 7 of the Bankruptcy Code, setting the stage for the company to shut down and liquidate its assets.

The Portales News-Tribune reports that documents filed in court indicate that the company’s board on April 17 approved resolutions to start bankruptcy proceedings.

Company officials continued after that date to seek a $500,000 grant from Portales and city officials say Sunland provided assurances about its financial health.

Sunland board Secretary Wayne Baker says the April resolutions were a formality and that company officials thought until October that they’d be able to keep the company going.

Top
Read previous post:
Las Cruces to sue state agency over tax rejection

LAS CRUCES, N.M. (AP) — Las Cruces intends to sue a state agency over its rejection of a planned increase......

Close