A two-row potato harvester manufactured by Double L of Heyburn, Idaho, is shown in this file photo. More than $2 million worth of Double L assets have recently been sold as part of a bankruptcy proceeding. (Contributed photo)

An Idaho company that manufactures potato planting and harvesting equipment has sold substantially all of its assets for more than $2 million as part of bankruptcy proceedings.

Double L of Heyburn, Idaho, filed for Chapter 11 bankruptcy proceedings last year to shield its assets from foreclosure while continuing operations, citing several years of financial losses in the millions of dollars.

The company said it’d experienced “consistent, disastrous negative cash flow,” with losses ranging from $5 million to $11 million in recent years, and considered a sale the best option to prevent a sudden closure that would endanger its employees’ livelihoods.

Earlier this year, the U.S. Trustee’s Office that oversees bankruptcy cases urged the judge presiding over Double L’s bankruptcy to convert it into a Chapter 7 liquidation based on its “continuing loss and unlikely rehabilitation, gross mismanagement, unexcused failure to file timely reports of sale,” and other problems.

Among other issues, the U.S. Trustee’s Office complained that it did not believe the asset sale had been completed despite being approved by the bankruptcy judge, as the company had not filed a report of sale, which “may be related to difficulties accounting for raw materials or inventory items.”

The company responded by filing financial documents showing that its assets had been sold for nearly $2.2 million to the Barclay Limited Family Partnership of Idaho.

Double L’s initial bankruptcy documents said the company planned to sell its assets to BTR Manufacturing of Paul, Idaho. Filings with the Idaho Secretary of State indicate the Barclay Family Limited Partnership is an affiliated entity with the same registered agent as BTR Manufacturing and other companies involved in truck parts and repairs.

Despite the report of sale, the U.S. Trustee’s Office has objected to a Chapter 11 plan of reorganization filed by Double L, saying an associated disclosure statement “fails to provide adequate information” and arguing it doesn’t sufficiently explain the plan’s benefits compared to a Chapter 7 liquidation.

The bankruptcy judge recently ordered the company to amend its disclosure statement and has scheduled hearings on a possible conversion to Chapter 7 liquidation for July 17 and on its Chapter 11 bankruptcy plan for Aug. 22.