Last PACA Trust claims paid in Salyer American case
Last PACA Trust claims paid in Salyer American case
In what is still an unpublished decision, a judge sided with growers and ordered the receiver in the Salyer American Fresh Foods case to pay the final PACA Trust claims.
The case arose in 2009, when Salinas, CA-based Salyer American was placed into receivership and closed its doors. Soon after, 16 PACA Trust claims were filed, with the receiver filing objections to all 16. Under the provisions of the PACA Trust, produce creditors essentially are first in line to get paid in the event of a bankruptcy or a company dissolution, as was the case with Salyer American.