Bankrupt Chicken Processor Townsends Jumps To Ch. 7

Law360, New York (October 6, 2011, 6:53 PM EDT) -- A Delaware bankruptcy judge on Wednesday granted poultry processor Townsends Inc.'s request to convert its bankruptcy from Chapter 11 to a Chapter 7 liquidation, but gave the company a week to tie up loose ends before putting a trustee in charge.

The conversion will be effective Oct. 13, and U.S. Bankruptcy Judge Christopher Sontchi will appoint a trustee to oversee liquidation of the company's remaining assets.

Townsends, which sold all of its chicken plants after filing for bankruptcy in December, said in its Aug. 26 conversion...
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