Founded in 1903 by Edward Adams, the family-owned company was sold to the company executives and a private equity firm in 2010. Two years later — and just months after the fraud scheme — the executives filed for Chapter 11 bankruptcy reorganization, according to court documents.
“Due to objections asserted by certain major PACA creditors, the (Adams Produce executives’) debtor in possession financing was not approved, (and they) were forced to cease operations,” the federal bankruptcy judge wrote in her order approving the bankruptcy liquidation plan.
The bankruptcy judge also noted “virtually all PACA claims were resolved by settlement which resulted in most PACA claimants that had properly filed a claim receiving approximately 80% of their claims.” She initially estimated PACA claims at about $60 million. Some were not paid because sellers failed to properly document the amounts due to them.