BANGOR (AP) – A 50-year-old Belfast food processor that made and marketed frozen baked stuffed potatoes and potato skins has filed for liquidation bankruptcy, citing debts of $5.8 million.

Penobscot Frozen Foods sold its buildings and land at auction in April to County Super Spuds Inc. of Mars Hill, its biggest creditor. KeyBank Corporate Capital Inc. foreclosed on Penobscot Frozen Foods last spring after the company was unable to meet its obligations on a $1.5 million loan.

Curtis Kimball, attorney for Penobscot Frozen Foods, said the Chapter 7 filing in U.S. Bankruptcy Court alerts the company’s approximately 245 creditors that they should stop any possible legal action because there is no money to gain on their overdue bills.

“Don’t throw good money after bad,” Kimball said.

In an unrelated case, Aroostook County potato grower Rocky Beach Farms Inc. filed for Chapter 12 bankruptcy protection, citing more than $1 million in debts.

It was the second bankruptcy filing in two years for the St. David farm owned by Gerard and Adrienne Ouellette. Three months ago, a judge dismissed the earlier case after attempts by the state Department of Agriculture, Food and Rural Resources to force the business into liquidation were resolved.

Chapter 12 bankruptcy protection is similar to Chapter 11, which is typically used by businesses to hold off creditors and allow time for reorganization. Chapter 12 applies to farms and allows farmers to pay debts from profits generated by future crops.



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