A popular longtime Topeka dairy operation struggling to remain financially afloat has filed for Chapter 12 bankruptcy protection.
The Iwig Family Dairy, which began as a family farm in 1910 before expanding in 2005 into a processing and bottling plant in Tecumseh with retail outlets in Topeka and Lawrence, filed for Chapter 12 reorganization Nov. 15 with the U.S. Bankruptcy Court for the District of Kansas. Iwig will have 90 days to create a reorganization plan to provide payment to its creditors.
Chapter 12 bankruptcy was designed specifically for financially distressed family farmers.
In its bankruptcy filing, the dairy operation located at 3320 S.E. Tecumseh Road and owned by third-generation dairy farmer Tim Iwig and his wife, Laurel, listed assets of $696,053 and liabilities of $1,177,573, The company’s largest asset, the family farm used as collateral in a loan from Kaw Valley Bank, is involved in a foreclosure action,
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