Sandy Road Farms’ case should be dismissed or converted, trustee says

By Sarah Lizee

Olympia, Wash., Sept. 13 – Sandy Road Farms, LLC’s Chapter 11 bankruptcy case should be either dismissed or converted, the U.S. trustee overseeing the case said in a motion filed with the U.S. Bankruptcy Court for the District of Kansas.

Region 14 U.S. trustee Ilene J. Lashinsky said the debtor’s failure to maintain insurance coverage on nearly all its assets threatens the estate.

Lashinsky said the debtor has suffered multiple uninsured losses, including three truck accidents and wind damage to a dozen buildings.

The U.S. trustee said there would be no source of remedy for creditors if any of these assets were destroyed.

In addition to the possible loss of assets, the estate is leaving itself open to claims if anyone is injured by ongoing clean-up or other activity on 15 farms with numerous buildings, a dozen of which are in a damaged condition, Lashinsky added.

The Plains, Kan.-based agricultural company filed Chapter 11 bankruptcy on Aug. 1 under case number 22-40446.

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