A hearing is scheduled for Meadowbrook Farms, on Feb. 9, to review claims filed under the Packers and Stockyards Act.
 
The pork producer and packer cooperative based in Rantoul, Ill., filed bankruptcy last year and among the delinquent payments are some to its farmer members.  Following the hearing, to be held by the Illinois Department of Health, farmers who are owed money will have the opportunity to collect, according to Jeff Squibb, IDH spokesperson. 
 
According to PSA law requirements, Meadowbrook Farms had to post a $740,000 bond, Squibb notes. The hearing must be held before the state, which is the bond trustee and will distribute the bond proceeds, he adds. 

Farmers with business dealings with Meadowbrook Farms have filed 76 claims seeking a total of $5.4 million from the cooperative. The amount represents losses the producers incurred when they weren't paid for hogs they sold to Meadowbrook Farms.

Each claimant has been sent a determination letter informing them whether the claim has been deemed valid.

"The hearing will give those who object to our determinations an opportunity to object," Squibb says. "Assuming there are no objections, the department will begin to cut checks and disburse the funds."

The Meadowbrook Farms pork plant closed a year ago and filed for Chapter 7 bankruptcy last spring. It is still working through those proceedings.

Source: Meatingplace.com