United States-Closed meat plant may re-open.

UNITED STATES-GLIMMER OF HOPE FOR CLOSED MEAT PLANT.

Two companies have expressed interest in possibly making purchase offers for the closed Meadowbrook Farms Cooperative pork processing plant at Rantoul , according to the bankruptcy trustee assigned to the case.

Trustee Laura Grandy of the firm Mathis Marifian Richter Grandy of Belleville said last week that having two companies indicate interest so soon after the plant closing is a good sign.

The cooperative filed for Chapter 7 bankruptcy last month. More than 600 employees were laid off Jan. 29.

The company had announced in March that its attempts to obtain additional financing and outside investors were unsuccessful because of its equity position and the state of the economy.

"You have a turnkey operation," said Grandy, noting the 120,000-square-foot plant, which processed 150 million pounds of pork a year, is only 5 years old.

She said representatives of the companies interested in buying the plant will be touring the facility soon.

"It’s new equipment. It’s been well maintained by caring people," she said

About a dozen Meadowbrook Farms vehicles have already been sold, but the goal is to keep as much of the equipment at the plant as possible to make the property more attractive to prospective buyers. Selling equipment would be a last resort.

Grandy said if a company submitted a proposal to buy the facility, she would file notice and allow other companies to submit higher bids.

Richard Klene, Meadowbrook president and CEO, said the banks and the trustee have to wait to see what transpires in terms of a potential sale, but there are "a lot of possibilities in the packing industry.

"Some places might just make it a processing plant and not kill hogs. They would have to do a lot of design work (to convert it). Others might say they want to operate it as it is. The building has the ability to expand," Klene said.

As a Chapter 7 bankruptcy panel trustee, Grandy’s job is to liquidate assets so creditors who file claims can be paid.

Grandy said she doesn’t know the dollar amount of claims at this point. Companies ranging from the one that leased lifts to the plant to its lenders are among those expected to file claims.

The 200 cooperative farmer members contributed $13 million to start the plant while bank loans amounted to $19.7 million from Stearns Bank of Illinois – loans that were guaranteed by the U.S. Department of Agriculture.

The plant was opened for two hours last week to allow former employees to pick up personal belongings. Part of Grandy’s job during that time was to make sure no one left the plant with anything that belonged to the company.

Many of the former Meadowbrook employees remain in the area. Some, however, have taken jobs in other parts of the country. Meat processing plants ran ads in the Rantoul Press seeking meat cutters after Meadowbrook closed.

Klene said he did not know how many of the employees took jobs outside the area.

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