Cagle’s Farms filed Chapter 11 Petitions in the Northern District of Georgia on October 19, 2011. The related cases are In re Cagle’s, Inc. (dba Integrated Poultry Company), Ch. 11 Case No. 11-80202 and In re Cagle’s Farms, Inc., Ch. 11 Case No. 11-80203. The cases are jointly administered under Cagle’s Inc. Click here for the skeletal Chapter 11 Petition and the 30 Largest Unsecured Creditors.
The Atlanta Journal has an article about the case, and the declining poultry business in Georgia:
It was the latest bad sign for the industry, worth $4.2 billion to Georgia farmers. Production prices have increased as prices for chicken have dropped. As Georgia producers lower their output to get in balance with demand, employment in processing plants has dropped.
Cagle’s, which began 60 years ago as a chicken shop in downtown Atlanta, listed $92 million in assets and $62.9 million in debts in papers filed Wednesday in the U.S. Bankruptcy Court in the Northern District of Georgia. Chapter 11 bankruptcy protects a company’s assets while a business continues to operate and work out payments with creditors.
It is the 21st largest producer in the U.S., according to the U.S. Poultry and Egg Association.
One creditor has already filed a Notice of Reclamation to recover distiller’s grain received by Cagle’s just prior to the filing. Creditors and other parties who provided goods to the Debtor just prior to the filing of the Chapter 11 petition need to act quickly to serve notices of reclamation in order to receive the goods or a priority claim. More information on reclamation is found in this prior post.