THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, August 15, 1995 TAG: 9508150248
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY SUSIE STOUGHTON, STAFF WRITER
DATELINE: FRANKLIN LENGTH: Short : 32 lines
Virginia-Carolina Peanut Farmers Co-operative Association has filed for protection under federal bankruptcy laws.
In papers filed Friday under Chapter 11 of the U.S. bankruptcy code, the 10-year-old co-op listed assets of $13.10 million and liabilities of $13.78 million.
Under Chapter 11, the co-op will continue in business under court supervision while it forms a plan to repay creditors.
Court records show about 86 peanut farmers, who are unsecured creditors, are owed about $7.2 million by the Franklin-based co-op. And there are more than 30 secured creditors, including Crestar Bank with a $6.4 million mortgage.
John Crowgey, the crisis manager hired in June by the co-op, said the financial problems resulted when peanuts were unable to be sold or were sold at prices below the purchase cost.
While the association does not plan to buy any peanuts this fall, it hopes to provide contract shelling.
The association recently leased its farmer stock storage space and peanut grading equipment to Hancock Peanut Co. in Courtland. by CNB