Formal Bankruptcy Proceedings Launched in Cattle Case
Statement of the Iowa Attorney General's Office:
Bankruptcy proceedings were formally begun today in connection with a cattle feeding and investment arrangement operated by George L. Young.
U.S. Bankruptcy Judge Jerry Venters conducted a hearing by telephone late Wednesday afternoon. Venters is a judge for the U.S. Bankruptcy Court for the Western District of Missouri, in Kansas City.
George L. Young and PBS Inc. both consented to establishment of bankruptcy proceedings. Involuntary bankruptcy proceedings had been initiated August 17 against Young and PBS by First National Bank and US Bank, both of Omaha. Young and PBS Inc. are named as debtors in the two actions.
Bankruptcy trustees were named in the two proceedings. For PBS Inc., Erlene Krigel of Kansas City was named as trustee (phone 816-756-5800.) For the George L. Young proceeding, Robert Pummill of Kansas City was named as trustee (phone 913-648-8877.)
The trustees by action of law are charged with marshaling and preserving the assets involved in the proceedings, including the cattle. Pummill asked the State of Iowa to remain in place as a temporary receiver until further order of the Court.
There are several key practical results of today's bankruptcy action:
No cattle may be moved or sold if they are situated at any feedlot where either George Young or PBS cattle were located. The trustees have control of the assets, and assets are frozen at this time. The State of Iowa's temporary receivership remains in place but will be subject to the Trustees' direction. The Attorney General's Office has offered to assist the trustees in resolving the matters with respect to Iowa cattle and assets.
Iowa Attorney General Tom Miller said: "This is a good step toward orderly resolution of this complicated situation, but many things still remain to be resolved."
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