PCA files for bankruptcy protection - WALB.com, Albany News, Weather, Sports

PCA files for bankruptcy protection

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ATLANTA (AP) - Virginia-based Peanut Corp. of America files for bankruptcy after recalls, salmonella outbreak.

The Virginia-based Peanut Corp. of America filed Friday for Chapter 7 bankruptcy protection in bankruptcy court in Lynchburg, Va.

The company said in the filing that its debt and assets both ranged between $1 million and $10 million.

The company's attorney, Andrew Goldstein, says the filing was "regrettable" but inevitable.

The salmonella outbreak was traced to one of the company's plants in Blakely, Ga., where inspectors found roaches, mold and a leaking roof.

 A second plant in Texas was shuttered this week. The outbreak has resulted in more than 500 illnesses, led to one of the nation's biggest recalls and caused as many as nine deaths.

The government is working on a criminal investigation into the case, and several lawsuits have been filed.

More this evening on WALB News.