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Court-appointed receiver takes control of Sam Kane plant

Receivership will allow company to streamline, cut costs and find new investor, buyer.

The U.S. District Court for the Southern District of Texas has appointed a receiver for Sam Kane Beef Processors, KRIS 6 News reported this week after obtaining court documents. Located in Corpus Christi, Texas, the plant owes millions to customers, creditors and the city of Corpus Christi. It also owes $400,000 in back taxes.

Richard Schmidt, the court-ordered receiver and a former bankruptcy judge, told KRIS 6 that, unlike a bankruptcy, a receivership will allow the company to continue operations but also ready the company for a suitable buyer or investor.

“This is way too important to the community, – not just money owed the city but the fact that we’re the 10th largest slaughterhouse in the country,” Schmidt told KRIS 6. “We supply meat across the country.”

​Schmidt said that despite the company’s financial situation, it still employs 750 people and does “a half-billion a year in sales on a $25 million payroll and annually processes 267,000 heads of cattle from 30 feed lots around Texas.”

Schmidt emphasized the next 3 months will be crucial for the company as it maps out the future.

TAGS: Business
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