Birmingham produce company to pay creditors in bankruptcy ruling

A judge has issued a ruling in Birmingham-based Adams Produce’s Chapter 11 bankruptcy filing. Monday’s ruling states that Adams must pay its creditors a total exceeding $8 million.

Chapter 11 bankruptcyAdams Produce filed for bankruptcy in April of this year, prompting many of the company’s creditors to make claims on the Perishable Agricultural Commodities Act, which protects agricultural trade. Originally, more than 60 companies sought payments from Adams under the law. Many of them did not have valid claims or did not follow the law’s guidelines, so they were dropped from the action.

The remaining 48 companies were looking for a total of more than $10 million, but will have to settle for the judge’s ruling. For example, the company seeking the most money for its claims calculated it was owed $6.6 million, but chose to settle for $4.8 million.

Going through a large bankruptcy with several creditors demanding thousands of dollars from you is doubtlessly stressful, but the services of an experienced bankruptcy attorney can help you clearly understand where you are and where you need to go.

Leave a Reply

Your email address will not be published. Required fields are marked *