CORPUS CHRISTI, Texas – Sam Kane Beef Processors LLC, operating out of south Texas, filed for Chapter 11 bankruptcy protection in the Southern District of Texas on Jan. 23.
The company said in its 27-page filing said between 100 and 199 creditors are owed money for assets valued between $50 million and $100 million. Court filings also showed another $50 million to $100 million in liabilities. The company had been operating under court-ordered receivership since October 2018 to allow it to continue operating and allow time to identify a suitable buyer of the troubled company.
According to the company, “In order to facilitate the ongoing sales process of the assets of Sam Kane Beef Processors, LLC ("Sam Kane"), and to assure the fair treatment of our creditors and employees, the Receiver has, in accordance with the powers provided to him by the Receivership Order, decided to place Sam Kane under the protection of the US Bankruptcy Court by filing Chapter 11."
Also known as Kane Beef, the company can still operate as finances are restructured. Sam Kane Beef Processors hired Okin Adams LLP, based in Houston, Texas as legal counsel for the case.
The US Bankruptcy Court of the Southern District of Texas listed the largest 20 unsecured claims for the company. Below are the following amounts for each creditor:
- Marquette Commercial Finance, Minneapolis: $47.6 million
- Luckey Custom Feedlot, Devine, Texas: $5.8 million
- Carrizo Feeders, Carrizo Springs, Texas: $4.17 million
- Texana Feeder, Floresville, Texas: $3.37 million
- Runnells Peters Feedyards, Quemado, Texas: $3.1 million
- Morales Feedlot, Devine, Texas: $2.7 million
- Bar G Feedyard, Hereford, Texas: $1.92 million
- Lubbock Feeders, Wichita, Kansas: $1.88 million
- Amigo’s Beef Cattle, Corpus Christi, Texas: $1.83 million
- MGM Cattle, Kingsbury, Texas: $1.79 million
- City of Corpus Christi, Texas: $1.15 million
- Graham Land & Cattle, Gonzales, Texas: $1.1 million
- Starr Feedyard, Rio Grande City, Texas: $1.1 million
- Santa Fe Feeders, Encino, Texas: $1 million
- Cal-Tex Feed Yard, Trent, Texas: $928,933
- Immel Feed Yard, Fredricksburg, Texas: $887,885
- McDonald Bar 6, Mathis, Texas: $791,205
- JB Hunt Transport Inc., Dallas, Texas: $725,740
- Live Oak Feedyard, Batesville, Texas: $709,860
- Gateway Cattle Co., Knippa, Texas: $660,853
The Corpus Christi Caller Times reported that the company owes $2.4 million to the city of Corpus Christi for public utility bills. The newspaper also reported that the facility had to be temporarily shutdown in January after discharging contaminated water in the city’s wastewater system.
According to a statement by the US Attorney’s Office of the Southern District of Texas from July 2018, Kane Beef entered into an agreement to comply with the Packers and Stockyards Act to repay nearly $38 million owed to sellers.
In August 2017, Kane announced it would expand its international business by exporting meat to China. The company exports to more than 25 countries.