Then the judge said what the non-Pro*Act group of PACA creditors had been theorizing.
The deal behind the settlement
The deal would have benefitted PNC Bank because it would get other creditors off the books, clearing the way for it to receive payment on a $5 million lien it claims to have against Adams Produce. Although Pro*Act and 17 other produce companies were in favor of the deal, many other PACA creditors were not willing to sign away future rights.
Judge Mitchell agreed with the non-Pro*Act group. She repeated that no one in the case has seen all of the financial records of PNC Bank and Adams Produce and until they do, she’s not interested in the settlement.