Farmers fear the threat of a dangerous virus that could damage their crops; at Jensen Farms, those fears were recently realized. Recently, the cantaloupe farm in Holly, Colorado, was forced to file for a Chapter 11 bankruptcy when the cantaloupes were infested with listeria. This bacterium causes a illness called listeriosis, which can affect people when they eat anything infected with the disease carrying agent. Normally, listeriosis targets pregnant women and their newborn infants, but can also affect anyone with a weak immune system. Elderly people catch listeriosis easily if they digest the bacteria.

30 people died from the listeriosis found in these cantaloupes and hundreds more came down with the sickness. Normally, listeria gives people flu-like symptoms which last about as long as an influenza outbreak would. Depending on the person, listeriosis can ravage the system for a day or a week. Yet when someone who is particularly weak ingests the bacteria, the results can be fatal. Sadly, Jensen Crops' had no idea that their cantaloupes were riddled with these horrible bacteria. They continued to sell their product, unaware of the dangers involved in taking a bite. They weren't conscious of the listeria until the Food and Drug Administration conducted an investigation and noted that the Jensen Farm's packaging and processing facility tested positive for the germs.

Originally, Jensen Farms' insurance company, Travelers Indemnity, said that they didn't cover personal injury occurrences, a clause which would ruin Jensen Farms. Thankfully, with a little bit of debating, Jensen Farms was able to come to a solution. The farm filed for Chapter 11 bankruptcy protection and its' insurer agreed to finance Jensen $2.5 million to buy back insurance policies. The coverage was for $1 million per incident, with a $2 million cap. Yet Travelers said that they wouldn't cover any of the damages that resulted from the listeria outbreak because the costs would be so high.

Currently in the Denver, Colorado bankruptcy court, Jensen Farms is asking for permission to put $2 million of the settlement that they arrived at with Traveler's into a trust for those who were affected by the horrible sickness. They also want to put away $500,000 for administrative costs that are associated with the $2 million trust. According to the Wall Street Journal, Jensen was able to gain another $1.9 million from other defendants who were involved with the listeria outbreak. These include a food safety company who failed to detect the bacteria and an equipment manufacturer. The money will roll in as soon as the settlements are approved. This means that those affected by the outbreak would have $3.9 million to split as compensation money for their illness.

Apparently, the trust fund is the only money that is available to cover the many payments that Jensen Farms will have to make due to the various lawsuits. They are cited in 19 wrongful death or personal injury lawsuits at present. Jensen Farms filed for a Chapter 11 bankruptcy, which normally means that the individual wants to restructure instead of liquidate all assets. Yet the court filings don't speak directly of Jensen's intentions. People assume that Jensen Farm's is going to try and continue farming and selling produce, but the negative publicity of the listeria outbreak has severely hampered their reputation. The company also sells watermelons, pumpkins, wheat, alfalfa, and corn. Many of their products were recalled when the FDA discovered the bacteria, and they have had to forgo various plantings this past year, bringing their value down. Currently, the company has listed $2 million in assets and $2.5 million in liabilities which will be dealt with in the bankruptcy.