Omtron USA LLC Files for Bankruptcy Protection in Delaware

Omtron USA, which bought poultry producer Townsends Inc. out of bankruptcy last year, filed for bankruptcy protection in Delaware.

The Siler City, North Carolina-based company listed assets and debt of $10 million to $50 million each in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware.

Omtron joins Zacky Farms LLC, a Fresno, California-based poultry producer, that filed for bankruptcy in October with plans to sell itself to pay creditors owed as much as $100 million. The closely held company blamed the filing on heavy debt and soaring feed costs in papers filed in U.S. Bankruptcy Court in Sacramento, California.

The North Carolina operations of Townsends were closed in 2011 by Omtron Ltd., which bought the processing plants, feed mills and hatcheries for about $24.9 million when Townsends was in bankruptcy.

Townsends Inc., a family-owned chicken and egg producer based in Georgetown, Delaware, filed for Chapter 11 bankruptcy on Dec. 19, 2010, listing about $131 million in assets and about $127 million in debt as of Dec. 5. In February 2011, Townsends won court approval to sell virtually all of its assets to Peco Foods Inc. and Omtron Ltd. for about $76.4 million. Peco, based in Tuscaloosa, Alabama, bought Townsends’ Arkansas operations for about $51.4 million.

The case is In re Omtron USA LLC, 12-13076, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Dawn McCarty in Wilmington at

To contact the editor responsible for this story: John Pickering at

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