Department of Agriculture Offers Possible Relief to Growers Affected By ABT Bankruptcy
OLYMPIA, Wash.--(BUSINESS WIRE)--Feb. 2, 2000--Seed producers doing business with AgriBioTech, Inc. (ABT), may be able to recoup some of their losses.
The company announced Jan. 24 that it will file bankruptcy so it can implement an operational restructuring and financial reorganization. The state Department of Agriculture holds a $220,000 surety bond on ABT that could provide partial payment to those that qualify.
Under state law, producers who sell, ship or deliver agricultural products for processing, sale or resale may be eligible. State law gives Department of Agriculture authority to make a claim against the surety bond on behalf of qualified producers.
"This bankruptcy is a terrible blow to an industry already suffering the effects of a weak agricultural economy," said Jerry Buendel, manager of the Commission Merchant Program. "We anticipate there will be many qualified claims, and that the value of the bond will not be sufficient to satisfy them all. Growers should contact their personal attorneys to determine if they have other legal options."
The process begins by filing a verified complaint with Department of Agriculture. The deadline is April 1. To obtain a complaint form call Department of Agriculture in Olympia at 360/902-1854 or in Yakima at 509/225-2616. Forms also are available from Alfalfa Seed Commission and the Turfgrass Seed Commission. Both commissions can be reached at 509/547-5538.
If you believe you are qualified to file a claim against AgriBioTech, or are unsure, send a completed complaint form to the Washington State Department of Agriculture, Consumer and Producer Protection Division, PO Box 42560, Olympia, WA 98504-2560 or FAX: 360/902-2086.
Investigators at Department of Agriculture will work to identify all potential claimants on the bond. The $220,000 will be distributed on a pro rata basis to eligible claimants. Eligibility for a share of the bond will be determined after the verified complaints are investigated.
In 1999, Washington turfgrass and alfalfa seed producers contributed $23.9 million to the state's economy.
CONTACT:
Department of Agriculture, Olympia
Jerry Buendel, 360/902-1856
or
Linda Waring, 360/902-1815 |
