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Peanut Company files for bankruptcy

Peanut Corporation of America, the company at the center of the salmonella outbreak, filed for bankruptcy in court on Friday.

The Chapter 7 bankruptcy papers were filed in U.S. Bankruptcy Court in the Western District of Virginia. The president of Peanut Corp., Stewart Parnell, signed the papers.

Foxnews.com reported that the company said its debt and assets both ranged between $1 million and $10 million in the filing.

Jean Holloran, director of food policy initiatives at Consumers Union and publisher of Consumer Reports, said that the bankruptcy will protect the company from liability suits filed by consumers who became sick or whose loved ones died as a result if eating PCA's products, CNN.com reported.

The recent national salmonella outbreak was traced back to one of PCA's plants in Blakely, Ga. Inspectors found

More products were recalled this week after inspectors found roaches, dead rodents, rodent excrement, bird feathers, mold and a leaking roof were found at a Texas plant.