A Delaware bankruptcy judge recently greenlit the Chapter 11 plans for HyLife subsidiaries. However, a new hurdle has emerged for the company as the Minnesota Department of Labor seeks $41,000 in backpay and unpaid overtime. HyLife has until the end of the month to respond to the state’s claims, with a hearing scheduled for early November.
In April, HyLife Windom, Tritek International, and Canwin Farms, subsidiaries of HyLife Foods, filed for more than $100 million in funded debt, linked to the closure of HyLife’s Minnesota facility. The facility, acquired in 2020, incurred monthly losses exceeding $6 million.
The court order, spanning 142 pages, outlines how the companies plan to repay creditors and either dissolve or merge by an undisclosed date. HyLife recently sold the Minnesota facility to Iowa Premium Pork in a June auction for $13 million. Additionally, the company agreed to sell 20,000 finisher hogs to AgriSwine Alliance of Aberdeen, S.D., for $60 per head, totaling $1.3 million.
HyLife, a Canadian parent company, announced layoffs of 87 employees at two Manitoba facilities in June, attributing the decision to inflation, escalating production costs, market uncertainties, and foreign exchange rates. As the company navigates these financial challenges, the court’s approval of the Chapter 11 plan marks a significant step in its restructuring efforts.
