Willow Wind Organic Farms Inc., of Spokane, has filed for Chapter 11 bankruptcy protection.
The company listed assets in the range of $1 million to $10 million, and debts in that same range on its filing in U.S. Bankruptcy Court here.
Neither Steve Walser, president of Willow Wind, nor Barry Davidson, the companys Spokane attorney, could be reached for comment on the filing.
Willow Wind says in documents filed with the court that both Kenyon Zero Storage Inc., of Grandview, Wash., and Washington Trust Bank, of Spokane, have liens against Willow Winds assets. The documents say that Willow Wind owes Kenyon Zero Storage about $2.4 million on a bridge loan, and owes Washington Trust about $550,000 on two notes.
Other debts listed on the bankruptcy filing include about $167,000 to National Frozen Foods Inc., of Seattle, and about $60,000 to MarBran USA, of McAllen, Texas.
Separately, a Spokane County Superior Court complaint alleging breach of contract filed against Willow Wind in August has been stayed by the companys Chapter 11 filing, says Stephen Phillabaum, the Spokane attorney representing the plaintiff in that case.
The complaint was brought by Columbia Capital LLC, of Portland, Ore., which alleged that Willow Wind owed the company nearly $142,000 for business-development services it provided, including identifying potential investors.
Phillabaum says a trial date in that matter had been set for February. Because of the stay, Columbia Capital plans to file a proof of claim in Willow Winds Chapter 11 case, which, if approved, would allow that debt to become part of the bankruptcy proceedings.
Walser and his wife, Margaret Walser, founded Willow Wind Organic Farms in 1980 as a 40-acre operation. By early 2002, Willow Wind had expanded to include a 640-acre farm, plus packaging and distribution operations that handled organic produce grown by other farms. Willow Wind employed 13 at that time.