Just one week after filing for Chapter 11 bankruptcy, Sam Kane Beef Processors’ court-appointed receiver told the Corpus Christi Caller-Times that the highest bidder lined up to purchase the company was unable to secure financing. Eight buyers had expressed interest in the processing plant, but now the company may sell through auction.
"They (the top bidder) did not have the finances to close the deal in the way they promised," Richard Schmidt told the Caller-Times.
It was also reported that Kane Beef filed a motion this week seeking permission from a judge to sell the property. An emergency hearing had been scheduled for Wednesday in Houston, Texas, where the company was also expected to ask a judge whether it can use cash to pay expenses it needs to spend to maintain the plant.
Meanwhile, many of the company’s employees will be furloughed, with some expected to be taken off the job. Schmidt told the Caller-Times that workers with jobs essential to preserving the plant's assets would remain working. These include security, warehouse workers and truck drivers.
Last week, a bankruptcy judge signed an order that would permit the company to pay employee wages, including payroll taxes.
The Caller-Times said the plant remains unable to resume part of its operations at least until the conclusion of a Feb. 8 hearing on termination of its wastewater discharge permit with the city of Corpus Christi.