Reuters: Regulatory News: UPDATE 1-AFA Foods files for bankruptcy protection over "pink slime"

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UPDATE 1-AFA Foods files for bankruptcy protection over "pink slime" Apr 2nd 2012, 11:14 April 2 | Mon Apr 2, 2012 7:14am EDT April 2 (Reuters) - Ground beef products processor AFA Foods said it has filed for bankruptcy protection in a U.S. court early Monday morning in order to sell some or all its assets following the impact of media coverage related to boneless lean beef trimmings. The industry has faced a backlash over the use of an ammonia-treated beef filler product that the meat industry calls "finely textured beef" -- which has been dubbed "pink slime" -- that is at the center of one of the biggest U.S. food fights in recent history. The company, which filed for Chapter 11 protection along with its affiliates in a bankruptcy court in the district of Delaware, listed assets and liabilities in the $100 million to $500 million range. AFA also said it has secured a commitment for $56 million in debtor-in-possession financing from its lenders GE Capital and Bank of America. "We believe an orderly sale through Chapter 11 will allow us to unlock this value and provide a smooth transition for our employees, customers and other business partners," Ronald Allen, interim chief executive of AFA Foods said in a statement. The case is In re: AFA Foods Inc, U.S. bankruptcy court, District of Delaware, No: 12-11128

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