The Chapter 11 bankruptcy filed by Agriprocessors, Inc. in New York will soon be heard by a judge in Iowa.

Several creditors in the case petitioned for the change of venue, arguing that the true headquarters of the company was in Postville. The company argued that it was headquartered in Brooklyn, the site of an Agriprocessors distribution center and home of company founder A. Aaron Rubashkin. Creditors, many of them located in the midwest, also argued that holding the proceedings in New York caused them hardship due to travel and other expenses.

The original motion to change the venue from New York to Iowa was nearly immediately by First Bank Business Capital, Inc. Agriprocessors has allegedly defaulted on a $35 million loan from the creditor, and it is speculated that a suit filed in Iowa by First Bank was the catalyst that prompted Agriprocessors to begin bankruptcy proceedings.

First Bank’s motion was quickly followed by several creditors, most notably MLIC Asset Holdings LLC, doing business at MetLife Ag Investments of Kansas, and Ohio-based National City Commercial Capital, LLC. MLIC has alledged that it is owed approximately $9.6 million  by Agriprocessors. National City claims roughly $2.9 million in unpaid equipment leases at both the Postville and Gordon, Neb. facilities.