Produce suppliers and other creditors of Adams Produce Co. LLC must file proof of claims by July 6 if they want to pursue back payments in the $50 million bankruptcy case of the Birmingham, Ala., company.
The deadline applies regardless if the alleged money owed is covered by the Perishable Agricultural Commodities Act.
Produce companies have already alleged Adams owes a total of more than $12 million in secured PACA claims, according to court documents. The bankruptcy filings show another $4.4 million in produce bills related to unsecured PACA claims.
Pro*Act LLC, Monterey, Calif., has the largest PACA claim listed so far, at almost $5 million. Judge Tamara Mitchell has estimated there are about 1,400 total creditors — many of which are not produce suppliers.
Mitchell is scheduled to consider several motions July 9 in the case, including a review of two different PACA claims procedures.
One procedure is being promoted by Adams, Pro*Act and several other PACA creditors. At least three other PACA creditors objected to the PACA procedure plan proposed by Adams and Pro*Act and filed an alternative proposal.
The companies seeking the alternative are: Alex Kontos Fruit Co. Inc., Birmingham, seeking almost $1 million; Grover Bailey Tomato House Inc., Pensacola, Fla., seeking more than $176,000; and Lee’s Produce, Thomasville, Ga., seeking more than $67,000.
Initially Adams filed for Chapter 11 bankruptcy reorganization, but on May 30 the company requested the case be converted to Chapter 7 liquidation. That conversion is among the motions set for consideration during the July 9 hearing.