Psc Secures Line Of Credit But Restless Creditors May Try And Force Company To Liquidate

PSC Food Service Inc., a West Plains vegetable processor and food supplier mired in bankruptcy, has secured a $1.25 million line of credit to continue operations while negotiating to become a vendor for a “national food distributor.”

But unsecured creditors say negotiations have dragged on too long, and they’ve hired an attorney to consider liquidating PSC.

U.S. Bankruptcy Judge John Klobucher earlier this month approved the line of credit with Inland Financial Corp., a Spokane finance company.

PSC, which is owned by brothers John, James and Patrick Cooper, was required to immediately pay off $143,500 in claims by 18 fruit and vegetable vendors protected under the obscure Perishable Agricultural Commodities Act of 1930.

PSC in November sought Chapter 11 bankruptcy protection from 303 creditors. Since that time, operating losses have exceeded $200,000 per month, according to a Feb. 20 letter filed in bankruptcy court by Brian Bookey, chairman of the creditors committee.

Bookey said creditors are impatient with PSC’s protracted negotiations for a joint operating agreement with the national company. They’ve hired Spokane attorney Ian Ledlin to consider formal action, including the possible liquidation of PSC.

“The deal is still up in the air, and we need to move forward,” said Bookey, president of National Food Co. in Seattle.

Bookey and PSC attorney Barry Davidson both declined to name the national firm, but it likely is Alliant Food Service Inc.

Chicago-based Alliant needs a distribution center in Spokane to service Sacred Heart Medical Center, which was part of a national coalition of hospitals that agreed to buy its food from Alliant.

PSC on Jan. 9 listed assets of $4.4 million and liabilities of $5.1 million.

, DataTimes