ILWACO, Wash. — Jessie’s Ilwaco Fish Co.‘s biggest creditor will get the proceeds from all inventory sales, while Turnford Restructuring Group will remain as receiver.

Jessie’s will begin paying down debt to its largest creditors, GemCap Lending I LLC, despite the fish processor filing for receivership in February.

Meanwhile, unsecured creditors, such as Ilwaco, filed documents that the city is owed about $28,000 by the company. The city filed a proof of claim with Pacific County Superior Court because the city believes initial receivership documents undervalued what the city was owed by about $10,000.

At this point, there is no indication whether or when fish processing might resume at the multidecade Port of Ilwaco institution. The plant was among south Pacific County’s largest employers and Ilwaco’s biggest water customer.

When Jessie’s filed for receivership, Superior Court Judge Donald Richter assigned Christopher Wain, owner of the Bellevue firm Turnford Restructuring Group, as receiver. Wain was recommended to be receiver by Donald Alber, owner of Alber Seafoods, which bought Jessie’s in 2013.

GemCap opposed Wain’s appointment. But GemCap agreed to allow Turnford Restructuring Group to remain in charge of Jessie’s assets after GemCap was released from the automatic receivership stay, which prevented GemCap from collecting on its debts. The receivership also removed any claims to the collateral Jessie’s used to secure a $5 million loan from GemCap.

Jessie’s pledged all its company assets as collateral for the loan. The balance of the loan from GemCap as of March 3 was about $1.9 million, according to court documents filed in April. GemCap will be prioritized above other lenders until its debt is paid, according to court documents.

GemCap is entitled to all collections of the company’s accounts receivable and can sue for anyone in possession of its collateral. Any profit from inventory sold before the end of June will go to GemCap. After June, any remaining inventory will revert to the receivership’s estate, unless GemCap makes alternative storage arrangements.

Proof of claim documents submitted to the court by local fishermen, cities and others owed money by Alber Seafoods and Jessie’s are unsecured and won’t be a priority above GemCap and other creditors.

This includes money owed to the Marchand family. A proof of claim submitted by A. Pierre Marchand Jr. Living Trust estimated it was still owed $3.25 million. Pierre was the son of company matriarch, Jessie Marchand. Another member of the family, Doug Ross, filed a proof of claim for about $193,400 through his company, PDP LLC.

The initial estimate that undervalued the debt owed to Ilwaco also may have done the same to the Port of Ilwaco’s debt, which it estimated was a little less than $28,000, according to a proof of claim filed with the court.