-May 21,2019-
Zacky Farms Chapter 11 bankruptcy hearings continue this month with an indication that two of Zacky’s Fresno city facilities will be bought by OK Produce for about $4.4 million, including the former 164,000sf processing plant. Two more city properties have accepted bids at $1 million from Fresno Interstate Business Park LLC. Regards the 16 rural field operation properties ,the court received a bid of $19 million from the debtor in possession, Great Rock Capital.
In a court filing in mid-May Great Rock says that once the deal is completed they will lease ”certain of the Credit Bid Properties to Bel’s Properties” as tenant. That is Sanger-based Pitman Family Farms legal name. Pitman would then use the rural ranches as they were used by Zacky – to grow their poultry flocks.
The ranches are in Fresno and Kings counties. One of the largest is near Corcoran, a 400 acre spread with nearly a million sf of buildings.There are three ranches near Lemoore. Pitman Family Farms, Inc raises, processes and sells chicken, turkey, and duck products specializing in free-range and organic poultry.
Objecting in court to the Great Rock $19 million deal is junior lender Gem Cap who claims they were unfairly edged out of any chance to collect on their Zacky Farms debt.
Before the closure of Zacky Farms operations, Gem Cap says they were” compelled to re-hire all employees, needlessly pay for flock that was not being processed, pay for overhead while the factory was dormant, and incur substantial cost increases due to the inefficiencies associated with the implications of the suspension of operations. The actual damage due to the abrupt cessation in operations proved to be approximately $7.2 million plus interest and fees.”
Gem Cap’s complaint says “Great Rock abused the bankruptcy process by compelling the Debtor to file a voluntary petition for relief under chapter 11 that served no legitimate purpose but instead wrought havoc upon GemCap’s ability to foreclose on its collateral.”
Zacky Farms declared bankruptcy last November, the apparent end to a 100-year turkey farming business here. Ironically Pitman tried to buy Zacky Farms during its last bankruptcy filing in 2013.
Whatever happens in this court dispute, it appears the most likely operator for Zacky’s growing farms is family-owned Pitman who operates a new feed mill in Hanford to supply the ranches.