Peanut Corporation of America in debt to Plainview - KCBD NewsChannel 11 Lubbock

3/11/09

Peanut Corporation of America in debt to Plainview

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LUBBOCK, TX (KCBD) - NewsChannel 11 has obtained copies of the FBI search warrant served on the owners of the Plainview peanut plant.

The paperwork reveals new details into thousands of seized documents and their connection to the Peanut Corporation of America's facility in Plainview. Most alarming, investigators discovered invoices for products shipped from PCA's Blakely, GA facility to the Plainview plant dating back to January 2006. 

They also took an envelope with faxed quotes for electrical work in Plainview and an e-mail listing costs for building repair and maintenance. Authorities also removed a dozen boxes labeled ‘Plainvew Accounts Payable and Receivable'.

NewsChannel 11 also uncovered tens of thousands of dollars PCA owes the city of Plainview. We searched through 185 pages of the company's bankruptcy filings. PCA filed them with the U.S. Bankruptcy Court on Friday. We discovered that PCA is in debt to the city of Plainview, and we wanted to know how.

NewsChannel 11 spoke with Plainview City Manager Greg Ingham on Wednesday. He says the city loaned PCA approximately $150,000 with a low interest rate as part of an economic development project. Ingham says the money came from a Revolving Loan Fund. He says that's not local money. It comes from a grant, through the state, and that money is provided by the federal government.

Ingham says PCA paid back part of the loan, but he tells us they still owe approximately $70,000. He says the loan is on a secured note. That means Plainview should be at the top of the list to be paid back, if the PCA has enough money to do so.

NewsChannel 11 also acquired a copy of PCA's customer list, and it contains hundreds of companies.  (Click here) to see that list. 

(Click here) to read the FBI search warrant served on the Peanut Corporation of America's headquarters in Lynchburg, VA. 

(Click here) to read the Peanut Corporation of America's bankruptcy filings with the United States Bankruptcy Court, Western District of Virginia. This file is 4.93 MB. 

NOTE: You will need Adobe Acrobat to open these documents.

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