'Pink slime' company seeks bankruptcy protection

One of the beleaguered companies behind the so-called "pink slime" beef product has filed for bankruptcy protection.

AFA Foods says negative media coverage around its products has led to "changes in the market" and cut demand. It filed for Chapter 11 bankruptcy protection in Delaware on Monday.

The so-called "pink slime" is called "lean, finely textured beef" in the food industry, and is comprised of fatty cuts of meat unsuitable for use in other products.

The meat is treated with ammonia to kill any bacteria that may be present, and is often used as filler in ground beef.

The process is approved by the Food and Drug Administration in the U.S., as well as the World Health Organization and the Food and Agriculture Organization of the United Nations.

A growing movement against the product has brought backlash against the companies that make it. Many fast-food restaurants and supermarkets in the United States have stopped using the product, significantly cutting demand.

AFA is not the only company hurt by the bad publicity. Beef Products Inc. has shut down production at three plants that produce the product because of consumer concerns.

Last week, U.S. Agriculture Secretary Tom Vilsack assured the public that the product is safe to eat.

Ammonia-treated meat products are banned by Health Canada and cannot be sold or imported into the country.

AFA says it has $219 million in liquid assets and debt of $197 million, according to the papers.

Iowa Gov. Terry Branstad called Monday for a Congressional investigation into how what he called "a smear campaign" against the meat product commonly called "pink slime" got started.

"We have a smear campaign going on against a product that is healthy and safe," Branstad said at his weekly news conference.

"If they get by with this, what other food products are they going to attack next?"

The governor said he suggested an inquiry to U.S. Reps. Steve King and Leonard Boswell and raised the issue with Vilsack, a former Iowa governor. King and Boswell did not immediately return messages left Monday requesting comment.

"It's clear this is a safe product," Branstad said. "It's a lean product, it helps reduce obesity and there is a spurious attack being levied against it by some groups. You can suspect who they might be. They are people who do not like meat."

Branstad said he's firing off a letter to all the other governors in the nation, urging them to be equally aggressive on the issue. He also called on students at agricultural colleges in Iowa to use their social media skills "to counter what Hollywood and the media elites and the people who are spreading this misinformation are doing."

"It's their future that's being threatened by this," Branstad said.