POSTVILLE, Iowa --- Charities that received millions of dollars in donations from Agriprocessors before it declared bankruptcy are paying some of the money back.
On Wednesday, the trustee handling the now-defunct kosher meatpacker's Chapter 7 case announced a settlement with Colel Chabad, the longest-running charity in Israel.
Colel Chabad received more than $4 million from Agriprocessors in the two years before the company's bankruptcy, according to court records. The trustee said the company received nothing of value for the money --- which included 64 payments ranging between $1,445 and $200,000 --- and the payments were made when Agriprocessors was insolvent.
On Wednesday, the trustee filed papers stating two sides agreed to a $50,000 settlement.
The trustee said the agreement is in the best interest of the estate given the facts.
The settlement is pending court approval.
Colel Chabad is a nonprofit organization that runs soup kitchens and medical clinics and offers services to widows and orphans. It also has an immigrant aid program.
In December, the trustee announced a settlement with the charity Bet Kahila-Eighth Degree for $82,000. The organization had received $2.89 million from Agriprocessors.
The trustee is also seeking repayment from other charities, including the Torah Education Program of Northeast Iowa, which allegedly received $11 million, court records state.
Agriprocessors filed for bankruptcy in 2008 following an immigration raid. Former company vice president Sholom Rubashkin is currently serving time for federal financial charges.
Wcfcourier
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