CORRECTED Poultry Co. Townsends Converts Bankruptcy To Ch. 7

Law360, New York (September 14, 2011, 6:53 PM EDT) -- Bankrupt poultry processor Townsends Inc. has abandoned its Chapter 11 bankruptcy petition and said it wants to enter a Chapter 7 liquidation under a plan submitted Wednesday to a Delaware bankruptcy judge.

Townsends, which has sold all of its chicken plants since filing for bankruptcy in December 2010, said it can no longer afford a drawn-out Chapter 11 proceeding.

The company “believe[s] that a request for conversion is the appropriate action at this time,” Townsends said in an Aug. 26 motion. “Should the case not convert,...
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