Sam Kane Beef Processors LLC, located in Corpus Christi, Texas, announced this week that it has filed for Chapter 11 bankruptcy.

Richard Schmidt, the court-ordered receiver and a former bankruptcy judge, decided to place the company under the protection of the U.S. Bankruptcy Court by filing Chapter 11 “to facilitate the ongoing sales process of the assets” and “to assure the fair treatment of our creditors and employees.”

“Under these circumstances, the receiver made the determination that bankruptcy is the best implementation method to assure a speedy sale and transfer of Sam Kane's assets to a new owner,” the company said in a press release. “Chapter 11 will also allow for continued lending from either Sam Kane's lending institution or a debtor-in-possession lender.”

Schmidt was appointed as receiver in October 2018, during which time it was disclosed that the company owed millions to customers, creditors and the city of Corpus Christi, as well as $400,000 in back taxes.

The bankruptcy court filing obtained from the southern district of Texas showed that Sam Kane has between 100 and 199 creditors and assets and liabilities that each total $50-100 million. The filing also listed creditors with the 20 largest unsecured claims, 17 of which are cattle producers owed nearly $34 million combined.

“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 when he was appointed in the fall. “We supply meat across the country.”

​Further, Schmidt said 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 head of cattle from 30 feedlots around Texas.”

Following the Jan. 22 bankruptcy filing, Schmidt told the Corpus-Christi Caller Times that eight potential buyers have already submitted bids and that the company plans to file a motion to sell as early as Jan. 24. Still, he said that motion could take up to 30 days to be examined before a sale is approved.

"The (high) bidder is familiar with the plant ... and knows the people," Schmidt told the news outlet, without identifying the bidder. "We've done our due diligence to make sure they have the money to do what they say they can do."