Kosher plant owner files for bankruptcy
The owner of kosher food operations in Ogdensburg and Lowville filed in April for Chapter 11 bankruptcy protection.
Moise A. Banayan filed paperwork April 25 in U.S. Bankruptcy Court Northern District of New York in Utica. In the bankruptcy filing, Mr. Banayan listed his assets at between $0 and $50,000 and his liabilities at between $10 million and $50 million. He listed 29 creditors, including Signature Bank of New York City, which is seeking $11 million.
The kosher cheese plant in Ogdensburg and kosher dairy plant in Lowville have remained open since the filing. Chapter 11 lets Mr. Banayan continue operations while he tries to settle his debts by arranging a repayment plan with creditors.
The top unsecured creditors were American Equities of New York City at $4 million, Merill Lynch Business Financing at $792,000, M&I Equipment at $658,994, American Express of New York City at $475,000 and Mendel Group Inc. of New York City at $450,000.
The creditors also include the city of Ogdensburg at $277,025, the Development Authority of the North Country at $36,914 and Lewis County Industrial Development Agency at $13,322. The St. Lawrence County IDA was not listed in the filing.
The claims include money for equipment leases, credit cards, loans and mortgages. Bankruptcy Court Judge Stephen D. Gerling is presiding over the case, which is still pending.
Ned E. Cole, the executive director of Lewis County IDA, said he talked Thursday with Mr. Banayan about the status of Lewis County Dairy and the impact a public auction Wednesday in New York City had on the Route 812 plant.
"He did say it should have no or little bearing on the plant," said Mr. Cole, adding the Ogdensburg plant wasn't discussed.
Signature Bank filed suit in December against Ahava Food Corp., Yoni Realty LLC and Schwartz & Sons Inc., Brooklyn; Lewis County Dairy Corp., Lowville; St. Lawrence Food Corp., Ogdensburg, and Mr. Banayan and Ana Banayan, Monsey, for being in default on several loans. A New York County judge issued a default judgment in late March to Signature Bank totaling $9,338,104.
The "personal property" of Mr. Banayan sold at auction Wednesday was mostly contents from the Brooklyn plant, Mr. Cole said. A few items did come from the Lowville plant.
"At the end of the day, I want the Lewis County plant to stay open," Mr. Cole said.
Ogdensburg City Manager Arthur J. Sciorra said he continues watching the progress of the bankruptcy proceeding, along with continuing talks with Mr. Banayan about paying his delinquent bills.
The city and St. Lawrence County IDA are threatening to foreclose on the Ogdensburg plant if back utility payments, property taxes and loans aren't paid.
St. Lawrence Food Corp., which operates the North Country Manufacturing Inc. kosher plant at 30 Main St., owes the city about $600,000. The IDA and the city jointly filed a foreclosure notice last month.
The outstanding city bills include $200,000 in payments on the mortgage used to purchase the property, about $90,000 each on the 2006 and 2007 property tax bills, nearly $60,000 in fines from improper discharges to the city's wastewater treatment plant and about $160,000 for water and sewer services.
The county IDA is owed about $335,000 on two loans totaling $500,000. Loan payments haven't been made since November.
In April, the Ogdensburg Growth Fund Development Corp. was seeking $246,623 plus more than $60,000 in interest owned by Mr. Banayan under the terms of a $350,000 Growth Fund loan made in 2004. No payments have been made on the loan since April 2007.
The Ogdensburg plant employs about 60 full-time workers, according to company officials. Lewis County Dairy has about 50 workers.
