If the bankruptcy case concludes before the state court resolves the sale issue, Gentile said the bankruptcy judge has told him payments will be made to creditors based on the $750,000 sale price.
The U.S. Department of Agriculture filed an administrative action against Hunts Point Tropicals over allegedly incurring $1.2 million in Perishable Agricultural Commodities Act claims from July 2010 through June 2011.
The company and its president, Nessim Martinez, have 30 days to respond to the April 2 notice, according to Travis Hubbs, a PACA investigator and mediator. The company and Martinez could face sanctions and be barred from working in the produce industry, depending on the outcome of the PACA case.
Some of the companies with the largest PACA claims against Hunts Point Tropicals are:
- Nico-Mexi Food Inc., Chicago, for $163,385;
- 7 Monkeys LLC, Palisades Park, N.J., for $108,577;
- Amazona Tropical Farms, New York City, for $70,787;
- Paul Steinberg Associates, New York City, for $68,939;
- Jerry Shulman Produce, Hicksville, N.Y., for $54,415;
- Index Fresh Inc., Bloomington, Calif., for $49,245; and
- Weis-Buy Farm Inc., Ft. Myers, Fla., for $45,532.