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Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.
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AFA Foods, Inc. Files Chapter 11
On April 2, 2012, AFA Investment Inc., parent company of AFA Foods, Inc. and seven other affiliates (collectively, the "Debtors") filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The declaration of Ron Allen, Interim Chief Executive Officer, was offered in support of the Debtors' first-day pleadings (the "Declaration"). According to the Declaration, the Debtors are a consolidation of various meat processors that comprise one of the largest ground beef processing enterprises in the United States. Headquartered in King of Prussia, Pennsylvania, Debtors process over 500 million pounds of ground beef products annually. According to the Declaration, the bankruptcy was caused, at least in part, by the recent and unanticipated market developments involving public outcry over the use of boneless lean beef trimmings. According to the Declaration, the Debtors' primary objective in commencing the bankruptcy proceedings was to pursue a prompt sale of their assets. As of February 26, 2012, on a consolidated basis, the Debtors' books and records reflected approximately $219.6 million in assets and $197.3 million in liabilities.
The cases have been assigned to Bankruptcy Judge Mary F. Walrath and a motion for joint administration was filed to administer the cases under In re AFA Investment Inc., Case No. 12-11127 (MFW).