News in brief

Firm: Time to pay up

for Veg Liquidation

H.C. Schmieding Produce of Springdale said Monday that it is time for Veg Liquidation, the former owners of defunct Allens Inc., to pay $1.4 million in claims made under the Perishable Agricultural Commodities Act.

In August, bankruptcy Judge Ben Barry overruled objections by Veg Liquidation to nearly all of $1.5 million in unpaid bills claimed by H.C. Schmieding. In a filing Monday, attorneys representing H.C. Schmieding asked the court for immediate payment, noting procedure requires payment within 30 days of a claim under the act.

Earlier in September, D&E Farms of Pennsylvania said it was owed $2.3 million in claims under the act, since 30 days had passed since Barry overruled Veg Liquidation's objections.

Attorneys for Veg Liquidation had appealed the D&E Farms ruling to the Western District Court of Arkansas. In filings last week by Veg Liquidation and Sager Creek Vegetable Co., the buyers of the former Allens, argued payment is not required until the court rules the claim is final and cannot be appealed.

Siloam Springs-based Allens Inc. filed for bankruptcy protection in October 2013. Sager Creek Acquisition Corp. bought the Allens Inc. assets in February and changed the company name to Sager Creek Vegetable Co.

-- John Magsam

Big River Steel starts

construction of plant

Big River Steel LLC broke ground on its $1.3 billion facility near Osceola on Monday.

Construction on the steel mill is expected to last about 20 months, according to a news release.

The company has said it plans to hire more than 500 employees when it opens in 2016.

Big River Steel announced plans for the plant in 2013 and closed on financing in July, according to the news release.

"During my long career, I have been extremely blessed to be at events such as today many, many times. ... Never has a day touched me as deeply as being here celebrating with all of you," John Correnti, chairman and chief executive officer of Big River Steel, said in a statement.

-- Jessica Seaman

Arkansas Index falls

4.91 to close 348.02

The Arkansas Index, a price-weighted index that tracks the largest public companies based in the state, fell 4.91 to 348.02 Monday.

"Stocks took a breather after last week's rally as economic data disappointed investors," said Bob Williams, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.

From a broad perspective, Arkansas equities fared worse than the fractional declines of the major market averages, with four local stocks dropping by more than 2 percent, Williams said.

Total volume of the index was 15 million shares.

The index was developed by Bloomberg News and the Arkansas Democrat-Gazette with a base value of 100 as of Dec. 30, 1997.

Business on 09/23/2014

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