(July 23) KANSAS CITY, Kan. — Creditors involved in a Perishable Agricultural Commodities Act repayment lawsuit against a Kansas City foodservice wholesaler should receive an 85% recovery, said a lawyer representing suppliers who sold produce to the closed firm.

City Market Produce Co., Kansas City, closed Jan. 9.

After a settlement conference, a Kansas City bank agreed to release its PACA accounts receivables in a “six-figure” lump sum payment, said Jason Read, a partner in the Newport Beach, Calif.-based law firm Rynn & Janowski.

“Based on what we have discovered, this is an excellent result with the bank and shows the PACA trust in action is doing what it’s supposed to do,” Read said. “This will result in a recovery the creditors otherwise would not have received.”

The PACA claimants sought $200,000 in repayment.

No settlement has yet been reached with the remaining defendants, City Market president Randy Barnes and vice president Kathleen Aylward, who also were named in the lawsuit.

“The PACA trust creditors are still pursuing those individuals for any shortfalls in the balance due,” Read said.

A bankruptcy court judge must approve the settlement, Read said.