(UPDATED COVERAGE Oct. 10) The owners of Progreso Produce Limited I LP filed for Chapter 7 bankruptcy liquidation for the Boerne, Texas, business Sept. 30 listing more than 60 creditors including many fresh produce companies.
Curtis DeBerry, who signed the bankruptcy filing as managing partner for Progreso Produce, did not immediately respond to messages seeking comment on the case.
Court records show DeBerry reported company debts of $1 million to $10 million with assets of less than $50,000.
A meeting of creditors is set for 9 a.m. Nov. 14 in the main U.S. Post Office building in San Antonio. Proofs of claim against the company's potential assets are due by Jan. 8, 2014.
Initially proofs of claim were not necessary because the first trustee assigned to the case indicated there was likely not any property available to pay creditors.
That trustee resigned, as did a second one, both citing potential conflicts of interest. The first trustee did not specify the nature of the possible conflicts. The second trustee said in court documents that he was already assigned as trustee for the Chaparral Fruit Sales Inc. bankruptcy case. Progreso Produce is a creditor in the Chaparral case, creating the conflict of interest.
On Oct. 9 the judge on the Progreso case entered an order setting the new date for the creditors' meeting and the deadline for proofs of claim stating it now appears "a possible dividend may be declared for creditors at a later date."
One produce supplier, Gulfshore Produce Inc., Fort Myers, Fla., has already filed a document in the bankruptcy case as a trust beneficiary under the Perishable Agricultural Commodities Act. Neither Gulfshore nor Progreso indicated in initial filings how much money is owed to the Florida company.
According to Red Book Credit Services, Progreso Produce had been paying creditors within 35 days as of October 2012. However, average payment times steadily increased and have been at more than 50 days since February.
DeBerry’s father Dale DeBerry founded Progreso Produce more than 40 years ago. The senior DeBerry still works in sales, but his son, Curtis, bought the company and oversees management and growing operations, according to the company website.