Coharie Hog Farms, Inc. has filed for Chapter 11 protection from creditors. The company blames rising costs, declining demand and challenges resulting from the H1N1 pandemic for losses totaling $13.3 million in 2008 and $17 million so far in 2009.
The company, based in Clinton, NC, was founded in 1972 by U.S. Senator Lauch Faircloth and was currently ranked the 22nd largest swine producer by Successful Farming magazine. The 170-person company owns 30,000 sows and is the largest independent supplier of pigs to Smithfield Foods, Inc. The company owes more than $50 million to lenders, including Cape Fear Farm Credit and BB&T Bank. It owes unsecured creditors between $8 million and $10 million. The company listed assets of between $10 million and $50 million in its bankruptcy petition.
Source: Sampson Independent