Defunct Williamsburg pet treat plant to be sold at auction

It remains to be seen whether the sale of a now defunct Williamsburg pet food maker’s plant will be enough to pay off court judgments and liens against the company.

American Pet Food Manufacturing (APFM) Company LLC, which closed up shop in October, owes $155,000 to one creditor, FoodPros Marketing, which has asked for the property to be sold at public auction to satisfy its court judgment.

Special Master Commissioner Brandon W. Baird filed notice Monday in Whitley Circuit Court that the property would be sold at public auction on April 24 at 1 p.m.

FoodPros Marketing Inc. won a default judgment in U.S. District Court in London against America Pet Food for $155,000 last year. The company claimed American Pet Food had failed to pay for chicken breast meat it used in its products.

FoodPros then filed suit in Whitley Circuit Court on July 25, 2014 to have the property sold at auction and received a default and summary judgment on Oct. 6, 2014.

Impact Employment Solutions of Kentucky LLC, doing business as the Job Shop, also has three judgment liens against American Pet Food totaling $91,254.05. Impact Employment had provided employees for APFM, but wasn’t reimbursed by the pet food manufacturer.

Neither of these judgment amounts include interest.

A Feb. 6 appraisal of the property values it at $300,000, but it could sell for more or less than that amount.

After the property is sold, tax liens, if any, would first be paid to Whitley County and Williamsburg, according to an Oct. 6 order by Whitley Circuit Judge Dan Ballou.

A search of records in the Whitley County Clerk’s Office doesn’t indicate there are any delinquent tax liens currently on the property.

An on-line search indicates that the 2014 tax bill, which was initially $3,590, hasn’t been paid yet. With penalties the amount now due on the bill is $4,343.90. Delinquent tax bills are annually transferred to the Whitley County Clerk’s Office on April 15 at which time a tax lien is placed overdue unpaid property tax bills.

After the government entities are paid, then Impact Employment Solutions will be paid followed by FoodPros Marketing Inc., according to Ballou’s order.

The order doesn’t address two other judgment liens on file in the Whitley County Clerk’s Office against American Pet Food.

A judgment lien filed on July 31, 2014 by Nesco Resource indicates American Pet Food Manufacturing owes $146,016.65 plus interest not to exceed $5,000.

On Dec. 12, 2014, J.B. & B. Investments LLC filed a notice of judgment lien in the Whitley County Clerk’s Office totaling $308,051.76. American Pet Food is entitled to credit towards its indebtedness based on the sale of certain repossessed equipment by J.B. & B. Investments.

American Pet Food’s factory and grounds on 13th Street, originally belonged to Lion Uniform, which operated a manufacturing facility at the location for several years before the facility was closed.

The property was later donated to the City of Williamsburg, which in turn sold it for $1 to American Pet Food in 2012 on the condition that the company operate a manufacturing facility there.

Williamsburg Mayor Roddy Harrison admitted the city "rolled the dice" on American Pet Food by giving the company the property, but said it wasn’t really much of a risk since there was little interest in the site to begin with.

Last year, the City of Williamsburg unsuccessfully attempted to block the sale of the property.

On Oct. 7, the City of Williamsburg filed a motion to set aside the default judgment and dismiss the whole case.

On Nov. 13, Ballou signed an order denying the City of Williamsburg’s motion to set aside the default judgment and striking the City of Williamsburg’s answer to the complaint.

FoodPros and Impact had both objected to the city’s filing arguing that among other things the city had waited too long to file a response in the case.

Greta Price, the city attorney for Williamsburg, filed a notice of appeal on Dec. 4, 2014 indicating that the city planned to appeal the ruling to the Kentucky Court of Appeals.