OGDENSBURG — A second bankruptcy filing involving the kosher cheese plant here has complicated an already uncertain situation.


Ahava of California LLC, Venice, Calif., doing business as North Country Manufacturing and Ahava National Food Distributor, filed paperwork July 15 in U.S. Bankruptcy Court Central District of California. In the bankruptcy filing, the company listed its assets and liabilities each at $1 million to $10 million and having more than 200 creditors.


Chapter 11 lets Ahava of California President Fariborz Banayan continue operations while he tries to settle the company's debts by arranging a repayment plan with creditors.


St. Lawrence Food Corp., owned by Moise A. Banayan, leased the kosher food operations in Ogdensburg and Lowville to North Country Manufacturing last year. Fariborz Banayan is Moise's brother. The lease for Ogdensburg was signed Oct. 30, 2007, while Lowville was signed Aug. 29, 2007.


The kosher food plants in Ogdensburg and Lowville will continue operating despite the bankruptcy protection filing last month by the California company.


"They have no intention of shutting down operations there," said attorney Josefina F. McEvoy of K&L Gates of Los Angeles, representing Ahava of California, in a telephone interview Wednesday night.


Moise Banayan has no ownership interest in Ahava of California since his brother bought out his 50 percent share of the company in August 2005. The company intends to make lease payments to the city of Ogdensburg and Lewis County Dairy Corp., which owns the Lowville facility, Mrs. McEvoy said.


The city acquired the Main Street building and property last month for delinquent property taxes. City Manager Arthur J. Sciorra said Wednesday that St. Lawrence Food didn't pay the 2006 tax bill on the property, totaling $89,000.


"Our goal is to see the plant remain open and become prosperous," said Mr. Sciorra, who hasn't talked yet with Ahava of California officials. Mrs. McEvoy plans on talking with city leaders today.


The city acquired the 30 Main St. building and property in late July to protect its investment out of concern Signature Bank might take the equipment and close the plant.


The New York City bank filed suit in December against Ahava Food Corp., Yoni Realty LLC and Schwartz & Sons Inc., Brooklyn; Lewis County Dairy Corp., Lowville; St. Lawrence Food Corp., Ogdensburg, and Moise Banayan and Ana Banayan, Monsey, for being in default on several loans. The case is pending.


The city manager met for about 90 minutes Wednesday with Moise Banayan and his attorney, David P. Antonucci of Watertown. The parties discussed the future of the Ogdensburg plant and outstanding bills owed to the city.


"The city has been highly generous in keeping the operation going," Mr. Antonucci said after the meeting. Moise Banayan declined comment.


St. Lawrence Food owes the city about $600,000 in delinquent utility payments, property taxes and loans. Moise Banayan filed in April for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court Northern District of New York in Utica. Last month, he decided to file for Chapter 7 bankruptcy protection instead.


Chapter 11 grants relief from debt to a person or organization that is reorganizing with the goal of paying debtors. Under Chapter 7, all assets are liquidated to pay off debts, with the goal of starting over.


In his bankruptcy filing, Moise Banayan listed his assets at $0 to $50,000 and his liabilities at $10 million to $50 million. He listed 29 creditors, including Signature Bank of New York City, which is seeking $11 million.


The city and St. Lawrence County Industrial Development Agency filed a joint foreclosure notice in early July. The county IDA is owed about $335,000 on two loans totaling $500,000.


Mr. Sciorra said he's unsure if the outstanding bills to the city will be paid. County IDA officials didn't return calls for comment.


The Ogdensburg plant employs about 60 full-time workers, according to company officials. Lewis County Dairy produces bottled milk, cheese, yogurt and ice cream, which are then sold in New York City. It employs about 50 people.