The chances of avoiding Meadowbrook Farms’ bankruptcy are running out according to Rick Klene, president and chief executive officer for the financially troubled producer-owned pork processing cooperative. However, he told Meatingplace he remains cautiously optimistic about staving off bankruptcy. Klene added that he'll likely make a decision within the next two weeks.
Meadowbrook's board of directors has informed members and creditors that efforts to secure the $6 million it owes to producer-owners failed and that it will file for Chapter 7 bankruptcy to liquidate all assets. Proceeds from the liquidation would be used to pay as many of the company's debts as possible. Klene said the Meadowbrook board told him to file for bankruptcy "if it's the only option."
The cooperative closed its pork processing plant in Rantoul, Ill., and laid off 600 workers early last month.