An update to a story that KLVT News first brought you earlier this week. It was announced earlier this week that Clint Williams Co had sold its Madill, OK operations to Golden Nut and Tree Nut Company. Clint Williams Co. is a division of Texoma Peanut Co. It has now been announced that The Texoma Peanut Co., Clint-Co Peanut Co. and the Clint Williams Co-Western Division each filed a petition seeking bankruptcy protection in the US Bankruptcy Court.
The attorney representing the companies has declined to comment, however documents in the case reveal that it was primarily filed because the debtors’ gross profit decreased 136 percent, falling from $12.2 Million in 2012 to a loss of $4.4 million in 2013. The documents stated that the loss 2013 was driven almost entirely by losses associated with operating the Mississippi buying point locations. According to documents, the debtors hired an area manager for its Mississippi operation. The manager allegedly committed the debtors to purchase peanut production for more than twice the amount he had been authorized for and at prices that were supposedly well in excess of prevailing market rates.
Attorneys have filed several motions on behalf of their clients. They are asking that the debtors:
Be allowed to continue to pay withholding and payroll related taxes, and issue employee checks.
Establish procedures for the interim compensation of professionals.
Continue providing adequate assurance of utility payments.
Be allowed to file a consolidated creditor matrix.
Use Cash Collateral
The final hearing on motions will be November 24. 12 employees including the manager continue to work at the Levelland plant and they are currently handling peanuts. The Levelland plant opened in 2003 and has employed as many as 30 people in the past, depending on the size of the harvest. Most of the employees have been Seasonal employees.
The peanuts brought to the buying point here are stored or shipped to Madill, OK where the company is based.