SALEM, Ore. (AP) – Agriculture entrepreneur Frank Tiegs has pulled out of his planned $155.5 million takeover of the bankrupt NORPAC Foods processing company.
The Capital Press reports Tiegs said he’s withdrawn from the “asset purchase agreement” because of red flags with the company.
In August, the farmers’ cooperative filed for Chapter 11 bankruptcy protection to restructure its debt while remaining operational and announced Tiegs’ Oregon Potato Co. planned to buy most of its assets.
Tiegs says NORPAC hadn’t supplied documents that were needed to complete the agreement.
Since making the offer, Tiegs says he’s become aware of serious problems with soil and water contamination at NORPAC’s facilities, and regulatory problems he did not want to discuss.
Capital Press was unable to reach the lead attorney representing NORPAC in the bankruptcy for comment.