'Pink Slime' Co. AFA Forges Deal With Creditors In Ch. 11

Law360, Wilmington (September 18, 2012, 7:48 PM EDT) -- AFA Foods Inc., the meat processor run into bankruptcy by consumer backlash over "pink slime" beef filler, sought Delaware bankruptcy court approval Tuesday for a global settlement resolving lingering disputes between creditors over the proceeds from the company’s liquidation.

King of Prussia, Pa.-based AFA has raised around $70 million through the sale of its five processing plants, but does not have sufficient remaining assets to pay off the $71.5 million owed to second-lien lenders, several of which are affiliates of AFA’s private equity owner — The...
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