Bankruptcy

Georgia based Peanut Corporation of America, which obviously is facing a long list of problems, filed a Chapter 7 Bankruptcy petition in the Western District of Virginia.

From Reuters:

NEW YORK (Reuters) - Peanut Corporation of America sought bankruptcy protection on Friday after a salmonella outbreak traced to one of its plants led to one of the biggest product recalls in U.S. history.

The company filed a Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Western District of Virginia, saying the negative economic effects of the recalls have been "extremely devastating" to its financial condition...

More than 1,800 products have been recalled since mid-January due to the outbreak, either because they were linked to Peanut Corporation or because such links could not be ruled out...

Federal Bureau of Investigation officials in Atlanta and Virginia said earlier this week they had joined the U.S. Food and Drug Administration in a criminal investigation of the company...

Peanut Corporation listed assets in the range of $1 million to $10 million and liabilities in the same range, according to court documents.

The case is In re: Peanut Corporation of America, U.S. Bankruptcy Court, Western District of Virginia, No. 09-60452