VeroBlue informal equity group barred from participating in case

By Caroline Salls

Pittsburgh, March 20 – An informal group of VeroBlue Farms USA, Inc.’ s equityholders has been barred by the U.S. Bankruptcy Court for the Northern District of Iowa from participating in the company’s Chapter 11 case, according to an order filed Tuesday.

In its motion asking the court to ban the equity group from participation, VeroBlue cited a “measured obscurity on the entities who instigated its formation and on their organizational documents.”

“The questionable circumstances of the AHC’s formation and participation, and their wholly misleading solicitation to other shareholders... render inadequate any remedy other than a complete and permanent bar from participating in these cases,” the company said.

Chief bankruptcy judge Thad J. Collins said individual and corporate shareholders may participate in the bankruptcy proceedings “as is contemplated by the Bankruptcy Code and Federal Rules of Bankruptcy Procedure.”

VeroBlue Farms is based in Webster City, Iowa. It filed for bankruptcy on Sept. 21, 2018 under Chapter 11 case number 18-01297.

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