Company files bankruptcy

The Appeal-Democrat
Marysville-Yuba City, CA
August 26, 2005
By Kymm Mann/Appeal-Democrat

Colusa Mushroom Inc., which angered its neighbors with bad odors, has filed for federal bankruptcy protection, according to court records.

The company filed its petition earlier this week in U.S. Bankruptcy Court in Santa Rosa, claiming assets of no more than $100,000 and debts between $1 million and $10 million.

The filing includes a list of the company's 20 largest unsecured creditors. They are owed nearly $6 million. Fourteen of the creditors made unsecured loans, the filing said.

The Colusa County Tax Collector's Office is owed about $65,000, the filling said, while Colusa Industrial Properties Inc. has a disputed claim of about $653,000 that is "environmentally related."

In January, Colusa County sued the company and Colusa Industrial, owner of the industrial park on the city's east side where the plant is located.

The largest unsecured creditor is Petaluma Mushroom Farm at $1.67 million, the filing said.

The company owes Pacific Gas & Electric Co. about $76,000, the filing said. Sundet's Big Bale LLC of Arbuckle said it is owed about $422,000 for the large bales of hay that make up a filtering wall at the plant.

Stohlman Enterprises Inc. in Colusa has a claim for $66,000 for electrical supplies, the filing said.

Michael C. Fallon of Santa Rosa, the attorney handling the company's bankruptcy case, said he was not authorized to comment.

Phone calls to Colusa Mushroom Inc. revealed a disconnected number. Company officials could not be reached for comment.

The plant has been hotly contested in the last few months by nearby residents who claim the fertilizer gives off an unpleasant smell.

Members of the community and a group of residents who call themselves NoMO - short for No More Odor - have filed complaints in Colusa County Superior Court and were successful in getting a restraining order to limit certain practices at the plant.

Judge S. William Abel's order stopped the plant from growing mushrooms until the jury trial, scheduled for Sept. 8 and 9.

The plant was ordered to reduce by half its historical yearly total production, discontinue composting outside the facility and rearrange the transportation schedule so trucks are not carrying the mushrooms during the time most residents are home.

Appeal-Democrat reporter Kymm Mann can be reached at 749-4708. You may e-mail her at

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