Two companies eyeing bankrupt Meadowbrook Farms

Purchase offers on the closed Meadowbrook Farms pork processing plant at Rantoul, Illinois, has been made by two companies, according to the bankruptcy trustee assigned to the case.

Trustee Laura Grandy said last week that having two companies indicate interest so soon after the plant closing is a good sign.

The cooperative closed its plant on January 30, 2009, and filed for Chapter 7 bankruptcy late last month. The plant had a daily processing capacity of about 4,000 head

The company announced that efforts to obtain additional financing and outside investors were unsuccessful due to its equity position and the state of the economy.

The 200 cooperative farmer members contributed US$13 million to start the plant while bank loans amounted to US$19.7 million from Stearns Bank of Illinois which were guaranteed by the USDA.