Peanut Corp. of America Files Bankruptcy Papers

The company at the center of a salmonella outbreak investigation has filed for bankruptcy.

Peanut Corporation of America, whose Blakely, Georgia plant is being labeled as a source for the recent salmonella outbreak, filed a Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Western District of Virginia, claiming the negative economic effects of the recalls have been "extremely devastating" to the company's financial condition. Under Chapter 7 companies liquidate their assets to pay back creditors as opposed to reorganizing

To date, more than 600 people nationwide have been sickened and nine deaths may be tied in to the company's practices. Some 1,800 products have been recalled since mid-January due to the outbreak.

Earlier in the week, Peanut Corp. owner Stewart Parnell would not answer questions before Congress, citing rights under the U.S. Constitution.

Peanut Man to Congress: I'm Not Talking

In what made for a shorter than expected meeting Wednesday in Washington, D.C., Stewart Parnell, owner of Peanut Corp. of America, refused to testify to Congress regarding the current salmonella outbreak.

More than 500 people have been sickened nationwide from products that originated from the company's Blakely plant, according to health officials.

Parnell, who invoked his right to not incriminate himself before a House subcommittee investigating the outbreak, allgedly told his workers to ship bacteria-tainted products, pleading with federal health officials that he should be allowed to “turn the raw peanuts on the floor into money.”

The outbreak may be linked to at least nine deaths reported nationwide to date.

Federal agents on Monday raided the Blakely peanut processing plant that is at the center of a salmonella investigation.

According to authorities, federal agents took with them boxes and other materials from the Peanut Corp. facility. Law enforcement also raided the company's headquarters in Lynchburg, Va.