Beleaguered Farmland Industries, which has agreed to sell its major asset, its pork division, to Smithfield, said it will sell off its remaining assets to repay debts.
The bankrupt farmer-owned cooperative, once the largest in the US, has revealed a plan to repay creditors by liquidating assets. These include grain elevators throughout the Midwest and Farmland’s interests in joint ventures SF Phosphates, Agriliance and Land O’Lakes Feed, reported Associated Press.
The company expects to be able to repay its secured lenders and the unsecured creditors to its pork unit, Farmland Foods, the money they are due. Unsecured creditors to Farmland Industries are expected to get 50-65% of the money owed to them.
Kansas City-based Farmland has paid down more than US$400m in bank debt since it filed for Chapter 11 Bankruptcy protection in May.