When U.S. Bankruptcy Judge Peter McKittrick approved the $49 million dollar sale of NORPAC’s three Oregon plants on Tuesday, he attached one big condition: A union objection had to be resolved, one way or another.
On Thursday, it was.
Several Teamsters local unions withdrew their limited objection to the sale of facilities belonging to the bankrupt farmers’ cooperative.
That clears the way for the global cold storage company Lineage Logistics to finalize its purchase of the Brooks, Stayton and Salem plants by the end of the month.
In court filings, attorneys for the Teamsters said Local 670 had reached agreement with a third company – PNW VEG CO., LLC – which plans to buy the Brooks plant from Lineage. They said the agreement covers terms for a new collective bargaining agreement for future “food processing operations.”
PNW VEG CO. is a subsidiary of Oregon Potato Company, owned by the major agribusiness entrepreneur Frank Tiegs.
Tiegs has been buying pieces of NORPAC since it declared bankruptcy in August.
His company previously purchased its facility in Quincy, Washington, as well as its bulk inventory and intellectual property – including the NORPAC name.