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About Appeal tribune. (Silverton, Or.) 1999-current | View Entire Issue (Nov. 13, 2019)
SILVERTONAPPEAL.COM ❚ WEDNESDAY, NOVEMBER 13, 2019 ❚ 3A RESTAURANT INSPECTIONS MARION AND POLK COUNTY Semi-annual restaurant inspections from Sept. 13 to Oct. 3. splatter covering top surface above the shake mixing rod. Point deduction: 3. Oct. 1: No priority violations Basil & Board 22 Below Location: 4155 Rickey St. SE, Suite 126, Salem Date: Sept. 30 Score: 100 No priority violations Arctic Circle Location: 315 N Pacific Hwy., Wood- burn Date: Sept. 20 (reinspected Oct. 1) Score: 92 Priority violations ❚ Potentially hazardous food is not maintained at proper hot or cold holding temperatures, specifically: Gyro meat 46°F, sliced tomatoes 47°F, sliced cheese 45°F, shredded lettuce 44-48°F, tzatziki sauce 45°F inside the burger prep refriger- ator. Point deduction: 5. ❚ Food-contact surfaces are not clean, specifically: Old, thick layer of ice cream NORPAC Continued from Page 1A contracted farmers, including those who own a share of the company, to continue to sell their products. It would have allowed the company to continue to employ the over 2,000 work- ers – including over 1,000 full-time and around 1,000 seasonal – to continue on with the company they helped grow into one of the largest concerns of its kind. And it would have wrapped the bank- ruptcy up in a short two-month window. Then on Oct. 18 Tiegs informed NOR- PAC and the interested parties he was terminating the purchase agreement. One of the reasons given for termi- nating the sale was environmental re- ports showing problems with two of the sites: level one contamination – which can include non-infectious bacteria – at the Stayton site and level two contami- nation including arsenic over legal limits in the well of the Quincy, Wash., proper- ty. Despite Oregon Potato Company’s Oct. 18 decision to terminate the sale, district court judge Michael Fletcher ap- proved the sale of NORPAC’s assets to the company Oct. 29. Location: 500 Liberty St. SE, Suite 150, Salem Date: Sept. 30 Score: 95 Priority violations ❚ Potentially hazardous food is not maintained at proper hot or cold holding temperatures, specifically: Air is not cir- culating correctly in the walk-in refriger- ator. Some food items in the walk-in re- frigerator are warmer than 41F. (Butter- milk 45F, provolone cheese 47F, dip 44F, hummus 44F, wrapped cheese 46F). Point deduction: 5. Bierhaus Location: 145 Liberty St. NE, Suite 101, Salem Date: Oct. 1 Score: 100 No priority violations temperatures, specifically: Walk in refrig- erator had temperatures ranging from 44- 54F. Inside thermometer was reading 44F. Point deduction: 5. Oct. 1: No priority violations Burger King Chen's Family Dish Location: 3530 Commercial St. SE, Sa- lem Date: Sept. 30 Score: 100 No priority violations Location: 2138 Lancaster Drive NE, Sa- lem Date: Sept. 27 Score: 94 Priority violations ❚ Soap is not provided at a handwash- ing sink, specifically: Kitchen hand sink soap dispenser empty. Point deduction: 3. ❚ Hand towels or a hand drying device is not provided at the handwashing sink, specifically: Paper towel dispenser empty at bar hand sink. Point deduction: 3. Capitol City Grill Location: 3301 Market St. NE, Salem Date: Oct. 1 Score: 97 Priority violations ❚ Working containers of poisonous or toxic materials are not clearly labeled, specifically: Spray bottles of chemicals by the mop sink are not labeled. Point de- duction: 3. Cedars Restaurant & Lounge Location: 315 N Main St., Mt. Angel Date: Oct. 3 Score: 100 No priority violations Brown's Towne Lounge Determining if the purchase termina- tion was valid could be tied up in courts in the future. “We have since responded and said that we believe the ground for their ter- mination and their notice was given in bad faith,” NORPAC attorney Albert Ken- nedy said in a court hearing. “The debt- ors are willing and able for closing this transaction.” Creditors at the gate With NORPAC’s future uncertain, anxious creditors have been circling the company and desperately trying to get back the money they are owed. Court filings show NORPAC owes money to over 5,000 creditors. Secured creditors are owed approximately $125 million, it has $39 million in unsecured claims and the company received $15 million in financing from CoBank to con- tinue operations through Oct. 31, the proposed sale date. According to filings, NORPAC has $315 million in assets, including $10 mil- lion in real property. CoBank’s original agreement in fi- nancing the restructuring provided it would be repaid by Oct. 31. “That loan has now matured,” Co- Bank attorney Teresa Pearson said at a Location: 200 Detroit Ave., Detroit Date: Sept. 24 (reinspected Oct. 1) Score: 95 Sept. 24: Priority violations ❚ Potentially hazardous food is not maintained at proper hot or cold holding Nov. 1 hearing. “CoBank has no further obligation to fund at all or allow any use of cash collateral at this point.” As of Oct. 31, NORPAC used $6 million of the $15 million it received from Co- Bank to continue operations, according to court transcripts. At the Nov. 1 hearing, Pearson said the bank was willing to put off calling in its loan for two weeks to give the company a chance to find another suitor. “The bank wants to be prepared to take the next step. We are not planning to do anything precipitous at this very moment," Pearson said. “Because of the status of this busi- ness depending on what that is we think it’s important to be prepared to take that next step," Pearson said, "whatever that next step happens to be. We are asking for that breathing room.” NORPAC's Kennedy said in court there are other parties interested in pur- chasing some of the company’s assets, but he did not name potential suitors. Debtors such as AmeriCold have filed liens, arguing they should be paid off first, even before CoBank. “We’re not trying to cut anybody out,” Pearson said. “Admittedly we’re maxi- mizing the recovery for the bank, but un- til the bank is paid, there are other peo- ple that are in line behind us.” Deanie’s Wienies Hot Dog Co. Location: 1001 N Arney Road, Wood- burn (mobile unit) Date: Oct. 2 Score: N/A Priority violations ❚ Ready-to-eat food is not properly date-marked, specifically: Open bag of polish dogs and container of diced toma- Continued on page 3B Could fall into receivership CoBank’s proposed and the court ac- cepting a "forbearance agreement" Nov. 6. That means NORPAC can continue to operate while it seeks to find a new own- er or owners. But it also means the company won’t fall into receivership in the interim. “I think the biggest concern to the growers is that we not jump to some- thing here and lose control of the bank- ruptcy court in the process,” said attor- ney Tom Stilley, who represents Dan McCarty of J&M Farming. “I think the growers would prefer some control in the bankruptcy court proceeding.” Were a receiver to take control of the company, the farmers would have little say in how the case goes forward. But a judge could determine at a Nov. 12 hearing to grant one of CoBank's mo- tions and allow the bank to foreclose. And that's something creditors fear. 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