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Calif. Co. Seeks NM Peanut Butter Plant for $18.5M

PORTALES, N.M. (AP) — Court filings show a California manufacturer is seeking to buy assets of a defunct New Mexico peanut giant for $18.5 million.

The Portales News-Tribune reports that Trustee Clarke Coll asked a federal bankruptcy judge in Albuquerque last month to approve the sale of the Portales-based Sunland Inc. to Ready Roast Nut Co. in Hughson, Calif. In his Jan. 31 court filing, Coll's attorneys said Ready Roast's was the best proposal received for Sunland's assets.

Sunland closed its doors and filed for Chapter 7 bankruptcy in October after it was involved in a nationwide salmonella outbreak.

Sunland's attorneys had estimated the bankrupt firm's assets at close to $50 million in earlier court filings.

But lawyers for Sunland's three major creditors said they feared Sunland was over-estimating its value.