Several creditors of a Washington state canola processor and biodiesel producer want to force the company into bankruptcy.
The creditors filed a petition seeking involuntary Chapter 11 bankruptcy for Inland Empire Oilseeds of Odessa, Wash., that would allow the company to stay in business while it restructures debt.
The goal is for the company to remain operational once it reorganizes, said Keith Bailey, CEO of the AgVentures NW, a farmer-owned grain handler.
Inland Empire Oilseeds owes $1.2 million to AgVentures NW, according to the bankruptcy petition.
"They just haven't been meeting their debt obligations and provided no alternatives for working out," said Bailey. "There are opportunities. We just need to sort them out."
Capital Press was unable to reach Inland Empire Oilseeds for comment.
The company opened its plant in 2008 and urged farmers in the region to grow canola for processing, but was forced to shut down about two years later due to inadequate capital, according to a previous report in Capital Press. The facility was re-opened under new management in 2011.
-- Mateusz Perkowski