IOWA CITY, Iowa (AP) — Hundreds of companies that were paid by a bankrupt kosher slaughterhouse last year have been told to give back much of the money they received 90 days before the bankruptcy announcement.
The companies received the letter this week from the trustee for Agriprocessors, Inc., whose lawyer says the companies can negotiate their return payments.
The slaughterhouse declared bankruptcy in November 2008, months after an immigration raid. Manager Sholom Rubashkin was convicted last month of 86 counts of financial fraud.
Cattle sellers like Jeff Reed of the Central Livestock Association say they won't return the money.
The trustee's attorney, Dan Childers, says the demand ensures Agriprocessors didn't hide money with relatives or otherwise disguise its assets.