Kane Beef files for Chapter 11 bankruptcy
Kane Beef, headquartered in Corpus Christi, Texas, has filed for Chapter 11 bankruptcy protection and intends to sell its assets. The company’s plant in Corpus Christi was temporarily closed last week after it was discovered that it was discharging unauthorized waste into the city wastewater system.
According to the Corpus Christi Caller Times, Kane Beef disclosed in a court filing that it had between 100 and 199 creditors to repay, and reported assets and liabilities that each total $50 million to $100 million. Eight potential buyers have submitted bids for acquisition already.
Kane Beef was founded in 1949 by Sam Kane, a Czechoslovakian immigrant. The company, known first as Sam Kane Meat and later Sam Kane Beef Processors, was owned by the Kane family until 2013, when it was acquired by a group of Texas ranchers and cattlemen known collectively as Sam Kane Beef Processors Inc. They in turn sold the business to a South American businessman and his family, known as the Fernandez Group.
The company has dealt with several financial and legal problems. In addition to the recent plant shutdown, Kane Beef had to pay a $38 million settlement to cattle sellers to comply with the Packers and Stockyards Act. It also had to pay down a debt with the city of Corpus Christi over utilities fees.
Source: Corpus Christi Caller Times