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Peanut company files for bankruptcy

The embattled Peanut Corp. of America has filed for bankruptcy in the Western District of Virginia.

The Lynchburg-headquartered company is facing a federal criminal investigation and an expected flood of lawsuits over peanut products allegedly tainted with salmonella bacteria. PCA’s insurance company recently filed suit in Lynchburg, asking a judge to limit the insurer’s exposure for liability claims.

“Given the events of the past month, including the broad-based recalls of the products sold by the company and its subsidiary in Plainview, Texas, the company has no alternative but to cease operations,” said Roanoke lawyer Andrew S. Goldstein in a news release published by WDBJ.

The News & Advance has details and copies of the bankruptcy petition and the corporate resolution authorizing the chapter 7 filing.

The court’s file indicates that a creditors’ meeting is scheduled for March 12 in Roanoke.

By Peter Vieth

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