Peanut Corp. of America Files for Bankruptcy

[Robbien]

Source: Top News

Lynchburg-based Peanut Corp. of America filed for bankruptcy listing nearly $11.4 million in assets and debts of $4.8 million Friday in U.S. Bankruptcy court. The company was involved in one of the largest food contamination outbreaks in U.S. history that sickened 677 people in 45 states and may have contributed to nine deaths and led to one of the largest product recalls in U.S. history.

. . .

This could indicate that consumers who were sickened in the outbreak may have trouble recovering damages from company accounts because assets listed in the bankruptcy filing will likely go to other businesses that bought its products.

Out of the nearly $11.4 million in assets more than $7 million listed as assets was in insurance that covers the company's products and will not be used for claims by consumers. Trustee Roy V. Creasy said the money would be used to compensate businesses that had bought Peanut Corp. products that were recalled.

. . .

Experts said that by filing for bankruptcy Peanut Corp. is protected from creditors and others seeking money that is owed to them. The company would in general only pay out what is obtained through its insurance and the sale of assets and all lawsuits seeking money must now become part of the bankruptcy.

Read more: http://topnews.us/content/24200-peanut-corp-america-files-bankruptcy

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[msongs]

1. thus america's enemies - corporations - dodge responsibility to ... Americans nt

[gratuitous]

2. Oh whew!

I'm so glad their assets will be going to reimburse the companies that bought their tainted products rather than going to compensate the survivors of the people that they poisoned. I mean, some of those companies could be out thousands of dollars! And how unfair would it be for those companies to have to file a claim with their insurance companies, or write off the losses on their corporate tax returns.

I have to believe the surviving families will be cheering this humanitarian corporatarian allocation of the Peanut Corporation of America's assets.

[Moosepoop]

5. I hope that the sickened consumers or their survivors can sue

whichever companies ultimately produced the contaminated food items that caused their illnesses, since those companies will be receiving the compensation money instead of the human victims.

There's probably some anti-consumer law that will prevent that too, though... :mad:

[ConcernedCanuk]

3. Render them unto China - CHINA knows how to treat sleazy executives . .

.
.

[Grinchie]

4. It amazes me that "The Largest Peanut Processor in the United States"

Can go bankrupt so quickly.

[Tashca]

11. Wife works for a nut company

No relationship to this one.....I want to make that clear.

The company my wife works for .... sales were down 75% in February......people are not buying nuts and there may be more going down because of this piece of shit crook.

edit=spelling

[MadMaddie]

6. It doesn't prevent the authorities from prosecuting their

involvement in the deaths that occurred from their tainted products.

Seriously as barbaric as China is they don't fuck around with this kind of shit. They just sentenced to men to death for the baby milk formula deaths. I am not a staunch advocate of the death sentence but I am all for sentences that will make people think twice about this kind of stuff. I say hard labor, I don't care if it is braking rocks.

[Sherman A1]

10. Agreed & Well Said

I think the Chinese have it right in this instance.

[JayMusgrove]

7. And let's make sure the CEO and President and board of this corporation, all

wind up bankrupt, too, if not in jail for conspiracy to murder.

[salin]

8. those darn, expensive, government regulations...

(per the long standing republican rant against government). Perhaps if this company (and others) had been subject to real regulation, they would still be in business. Sure - there earnings would have been slightly lower (due to costs of keeping the plant, that processed food, sanitary) but it would probably still be in business - and consumers wouldn't be at risk.

The only good thing about these awful times is that the mantra that "greed is good" is finally so discredited that the conventional wisdom (per the general population sentiments) is rejecting it whole sale.

[Endangered Specie]

9. Well thats just nutty...