Sickened consumers who sued the peanut processor blamed for a national salmonella outbreak could have trouble recovering damages from company accounts because assets listed in a bankruptcy filing will likely go to other businesses that bought its products.
Lynchburg-based Peanut Corp. of America filed documents listing nearly $11.4 M in assets and debts of $4.8 M in U.S. Bankruptcy court. However, more than $7 M listed as assets was in insurance that covers the company’s products and will not be used for claims by consumers. Among the uses for that money would be compensating businesses that had bought Peanut Corp. products that were recalled, trustee Roy V. Creasy said.