AgriBioTech Creditors Awarded $14.87 Million Against Former CEO, Loan Entity

(Las Vegas) -- U.S. Bankruptcy Judge Linda B. Riegle of Las Vegas has entered a judgment for $14.87 million that will benefit hundreds of farmers and other creditors in the AgriBioTech Inc. (ABT) bankruptcy.

(PRWEB) January 29, 2005 -- The judgment was entered against former ABT Chairman and CEO Richard P. Budd of Winston-Salem, NC, and ABT Group LLC, an entity Budd established in 1999 to loan money to Henderson, NV-based ABT.

ABT Creditor Trustee Anthony Schnelling, the plaintiff in the case, was successfully represented by attorney David Bryant in the trial of the case in December. Bryant, a name partner in the Texas-based law firm of Diamond McCarthy Taylor Finley Bryant & Lee LLP, handles major corporate, business, and insolvency litigation.

The Court found that former CEO Budd received a preferential loan repayment of more than $10 million in June 1999, as ABT slid deeper into financial trouble. Budd was paid in full, but ABT filed for bankruptcy less than a year later, leaving hundreds of farmers in Idaho, Washington and Oregon, as well as other creditors, with more $60 million in unpaid debts.

ABT was a leading turf grass seed and forage seed supplier before filing for bankruptcy protection in January 2000, in one of the largest agricultural bankruptcies in U.S. history. The Court approved ABTs reorganization plan in 2001, appointing nationally recognized turnaround expert Schnelling to pursue claims for the benefit of creditors.
Litigation led by Diamond McCarthy against ABTs officers, directors, professionals, and consultants has resulted in aggregate settlements of more than $18 million prior to todays ruling. Litigation continues against ABTs auditors, KPMG, LLP.

This is an important step in the Trustees tireless efforts to bring justice to hard-working farmers and other creditors who were hurt by ABTs bankruptcy," said Bryant. We are very grateful that the Court devoted tremendous energy and attention to this case, and came to what we are confident is the right conclusion based on the evidence."

With offices in Dallas, Austin, and Houston, Diamond McCarthy Taylor Finley Bryant & Lee, LLP is a boutique law firm specializing in major business litigation and insolvency-related matters on a regional and national basis. For more information, visit www.diamondmccarthy.com.

For more information on the ruling, you may call David Bryant at 214.389.5323 (dbryant@diamondmccarthy.com) or contact Bruce Vincent at 800.559.4534 (bruce@legalpr.com).

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