Pure Prairie Poultry, Inc., a Minnesota poultry processor operating a facility in Charles City, Iowa, filed for Chapter 11 protection on September 20, 2024 in the District of Minnesota (Case No. 24-32426) seeking emergency DIP financing to continue operations and pursue a sale process. The company had accumulated approximately $38 million in operating losses from November 2023 to filing and carried approximately $69.3 million in secured debt, including a $33.4 million USDA-backed FSC loan (Community Bank & Trust), $8.4 million to Bremer Bank, and $17.1 million to shareholder Michael Helgeson, supplemented by agricultural cooperatives' input liens and mechanics liens. The proposed $15 million DIP facility from Sandton Capital Solutions (20% PIK interest, 100-day sale timeline) was blocked by Community Bank & Trust, SouthStar Financial, and agricultural cooperatives objecting to required priming liens. After seven days, the debtor filed an expedited motion to dismiss (September 25, 2024), and the court granted dismissal on September 27, 2024. The Charles City plant ceased operations on October 2, 2024, triggering depopulation of approximately 1.3 million chickens (October 17-26, 2024). Community Bank & Trust credit bid $25.7 million for assets in Minnesota state court (approved May 30, 2025).
