One the largest employers in the Central Valley is bankrupt, but it's not going out of business.
Soaring feed costs have pushed a Fresno poultry giant over the edge. Monday, Zacky Farms filed for chapter eleven bankruptcy.
Peter Fear, Fresno Bankruptcy Attorney says, "Chapter eleven is actually reorganization and what that means is they're trying to reorganize their debts."
The company is drowning in debt. Court documents show it owes between $50 and $100 million to at least 20 creditors. Company officials say they spend nearly $2 million a week on feed, and simply can't keep up.
"Corn prices are so high and other commodities are so high, it's really hurting farms that feed corn and grain," says Fear.
The company provides about 1,000 jobs in the Central Valley. Fresno bankruptcy attorney Peter Fear says people shouldn't be too concerned.
"What they're trying to do is they're trying to keep the business operating."
Danny Killian found out Zacky Farms was bankrupt Tuesday. He wants to work for the company. Wednesday, he was in front of the plant filling out an application.
Danny Killian, Fresno resident says "That don't bother me, as long as they don't go out of business that's all I care about. As long as they're employing, that's fine with me. And if I get a job, as long as I get a paycheck then that's fine."
Zacky is looking for a $71 million loan to keep it's business afloat. By mid-January the company could be auctioned off.
"At this point, it's just a time to see what's gonna happen. They're gonna try to sell it, it's a going concern. It looks like they're trying to keep everybody employed, but I don't know that it's a reason to worry just yet," says Fear.
We did reach out to a Zacky consultant, who is handling this bankruptcy issue. She declined to comment.
Zacky Farms opened in 1928 and is one of the country's largest turkey producers.