Daily Herald (Arlington Heights, IL)

Union sues Zema Foods to get liquidation funds.(Business)

A union-backed federal lawsuit may force Zema Foods of Addison to make its bankruptcy public.

Zema, a produce wholesaler, initiated a private form of bankruptcy under state law after it closed its doors in May.

The company's closing, which came after Bank of America cut off its financing, left more than 140 members of Teamsters Local 703 without jobs.

Now, the union has filed a lawsuit in federal bankruptcy court to force Zema, a unit of privately owned Reyes Holdings of Lake Forest, to liquidate its assets under federal bankruptcy laws, attorneys in the case said Wednesday.

The union's attorney, Glenn R. Heyman, said Wednesday that union members and their pension, health and welfare funds are owed a little more than $500,000. …

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