Iowa's SHF purchases bankrupt meat processor

Canadian businessman Hershey Friedman and his company, SHF Industries LLC, will purchase the bankrupt Agriprocessors Inc. for about US$8.5 million, according to media reports.

SHF Industries made the only bid for the meat and poultry processor, based in Postville, Iowa. This was the second auction for Agriprocessors; a previous process fell apart when lenders and prospective buyers couldn't agree on the terms.

Agriprocessors was the country's largest processor of kosher beef and poultry. A May 2008 raid by agents of Immigration and Customs Enforcement, however, resulted in the arrest of about two-thirds of the company's workforce as undocumented immigrants and prompted hundreds of criminal allegations against former managers of the company.

The company filed for bankruptcy in November 2008, and has been limping along at a fraction of its capacity since then.

The first of the former executives' criminal trials are due to begin in September.