Peanut Corp. of America files for bankruptcy

ATLANTA (AP) - The peanut processing company at the heart of a national salmonella outbreak has filed for bankruptcy.

The Virginia-based Peanut Corp. of America filed Friday for Chapter 7 bankruptcy protection in bankruptcy court in Lynchburg, Va. The company's attorney, Andrew Goldstein, says the filing was "regrettable" but inevitable.

The company said in the filing that its debt and assets both ranged between $1 million and $10 million.

The salmonella outbreak was traced to one of the company's plants in Blakely, Ga., where inspectors found roaches, mold and a leaking roof.

A second plant in Texas was shuttered this week.

The outbreak has resulted in more than 500 illnesses, led to one of the
nation's biggest recalls and may have caused as many as nine

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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  • by Michael Location: Midland city on Feb 13, 2009 at 07:26 PM
    Filing this bankruptcy stops people like me who was affected by the peanut butter from collecting agaisnt the company for my medical and lost wages. But it does not stop me from going after the indivuals that agreed to let the tainted product out of the store they are still legally cupable.
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