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Custom Poultry Processing auction in Iowa

The owners of a bankrupt chicken processing plant in Charles City, Iowa want to sell all of its free-and-clear assets. Custom Poultry Processing LLC started processing organic and antibiotic-free chickens last November, but then ran into financial difficulties. The company filed for Chapter 7 bankruptcy protection on January 20th, operations were halted on January 21st and employees were sent home. In early February, the court granted a company request to change bankruptcy status from Chapter 7 to Chapter 11, giving it time to reorganize.

Now the company says the fastest way to return to production is to sell its assets at auction on May 26th. A motion filed with U.S. Bankruptcy Court in Cedar Rapids says an auction would maximize the return to the bankruptcy estate.