ATS and creditors close to reaching an agreement
ATS and creditors close to reaching an agreement
PACA creditors who were owed about $500,000 were close to reaching a settlement agreement with ATS LLC (formerly known as Arkansas Tomato Shippers), which suspended operations the third week of October.
Priscilla Grannis of the law firm Rynn & Janowsky told The Produce News Oct. 31 that every time the phone rings, "I hope it is the debtor's counsel accepting the terms of an agreement. I am hopeful that we can get it done by the end of this week; if not, then early next week."
Ms. Grannis said that about 95 percent of the PACA Trust creditors are involved in the settlement talks, and it appears as if the dollar amount for PACA creditors is in the neighborhood of $500,000.
Ms. Grannis would not reveal the terms of the potential agreement, but another source close to the negotiations said that final payments should be close to 100 cents on the dollar if not at that figure. Attorney fees and interest were also being negotiated. Of course, there will undoubtedly be other non-PACA creditors such as seed companies, banks and transportation providers.
ATS is involved in a class-action lawsuit that alleges the firm did not pay as many as 2,500 guest workers from Mexico for transportation and other expenses as required by law. A source familiar with the case said that it appeared the class-action lawsuit and potential liability stemming from that case caused the owners of ATS to suspend operation.
The Blue Book reported that while ATS suspended operations, a company called JBL, operated by ATS' former sales manager, Brooks Lisenbey, is now running out of the same Nogales, AZ, location, which ATS formerly called its headquarters. A sales representative, who identified the firm as "JBL," answered a phone call to the ATS main phone number. Mr. Lisenbey did not return the phone call by this publication's press time.
Ms. Grannis said that a temporary restraining order against ATS was granted with a court date of Nov. 13 set for the preliminary injunction hearing. She expects a settlement well before the court date, which would render that hearing moot.
Ms. Grannis said that ATS does have one PACA action against it pending by one of the firms she represents, but its withdrawal will be considered if a settlement is reached. She said that no industry-initiated action would be pending, but that would not preclude the U.S. Department of Agriculture from filing its own case against the principals of ATS.
The Blue Book lists the ATS PACA licensee as Charles Searcy.
Priscilla Grannis of the law firm Rynn & Janowsky told The Produce News Oct. 31 that every time the phone rings, "I hope it is the debtor's counsel accepting the terms of an agreement. I am hopeful that we can get it done by the end of this week; if not, then early next week."
Ms. Grannis said that about 95 percent of the PACA Trust creditors are involved in the settlement talks, and it appears as if the dollar amount for PACA creditors is in the neighborhood of $500,000.
Ms. Grannis would not reveal the terms of the potential agreement, but another source close to the negotiations said that final payments should be close to 100 cents on the dollar if not at that figure. Attorney fees and interest were also being negotiated. Of course, there will undoubtedly be other non-PACA creditors such as seed companies, banks and transportation providers.
ATS is involved in a class-action lawsuit that alleges the firm did not pay as many as 2,500 guest workers from Mexico for transportation and other expenses as required by law. A source familiar with the case said that it appeared the class-action lawsuit and potential liability stemming from that case caused the owners of ATS to suspend operation.
The Blue Book reported that while ATS suspended operations, a company called JBL, operated by ATS' former sales manager, Brooks Lisenbey, is now running out of the same Nogales, AZ, location, which ATS formerly called its headquarters. A sales representative, who identified the firm as "JBL," answered a phone call to the ATS main phone number. Mr. Lisenbey did not return the phone call by this publication's press time.
Ms. Grannis said that a temporary restraining order against ATS was granted with a court date of Nov. 13 set for the preliminary injunction hearing. She expects a settlement well before the court date, which would render that hearing moot.
Ms. Grannis said that ATS does have one PACA action against it pending by one of the firms she represents, but its withdrawal will be considered if a settlement is reached. She said that no industry-initiated action would be pending, but that would not preclude the U.S. Department of Agriculture from filing its own case against the principals of ATS.
The Blue Book lists the ATS PACA licensee as Charles Searcy.
