DES MOINES, Iowa – Agriprocessors Inc’s meatpacking plant shut down on Wednesday, though the company says it will reopen.

Media reports said that Agriprocessors’s plant in Postville, Iowa suspended production on Wednesday. The company has been struggling through multiple crises since an immigration raid by federal agents in May.

An Iowa newspaper reported that the plant had stop cattle slaughtering weeks ago, but had continued chicken processing until last week. Company manager Chaim Abrahams told the press Agriprocessors’ main lender agreed to let the company use its remaining cash to meet payroll and immediate bills. The company filed for bankruptcy earlier this month and its former CEO Sholom Rubashkin was arrested last week for bank fraud.

The newspaper reported that the bankruptcy judge in New York has appointed a trustee to over see the bankruptcy.

Abrahams said the plant should resume chicken processing this week.


Source: Des Moines Register