Atty Says 'Pink Slime' Maker's Sale May Not Cover Debt

Law360, Wilmington (April 3, 2012, 7:00 PM EDT) -- AFA Foods Inc., which blamed its bankruptcy on the "pink slime" beef filler controversy, doubts that the sale of its businesses will be sufficient to pay off the company’s secured debt, an attorney for the meat processor told a Delaware bankruptcy judge on Tuesday.

At a court hearing, U.S. Bankruptcy Judge Mary F. Walrath approved a slew of customary first-day motions in the case and said she would sign off on a $55 million debtor-in-possession loan to fund the proposed sale once the loan agreement is...
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