For Tri-State Livestock News
At the end of January, Tyson Fresh Meats filed a lawsuit against one of the largest farming and ranching families in Washington, Easterday Ranches, in an effort to recover losses from fictitious fed cattle sales and feed costs. Additionally, Tyson was hoping to recover 54,000 head of cattle still standing in an Easterday feedlot north of Pasco, Wash. The lawsuit was filed in Franklin County Superior Court in Pasco.
On Feb. 1, days after Tyson sued Easterday Ranches, the ranching operation filed for chapter 11 bankruptcy in federal court. Official Form 204 in Easterday Ranches’ bankruptcy filings lists 20 of their largest unsecured claims. The top unsecured claim comes from Tyson Fresh Meats with at least $225 million. The second largest unsecured claim comes from Segale Properties at $8,647,408.57. All 20 unsecured claims add up to $236,671,645.
Bloomberg | Feb 03, 2021
By Jeremy Hill
Easterday Ranches Inc. is almost out of food for its 54,000 cattle. A bankruptcy judge may rescue them.
The cattle farm in Washington state filed for Chapter 11 bankruptcy on Monday after its only customer, Tyson Fresh Meats Inc., sued for more than $200 million, claiming it was being billed for the upkeep on bovines that don’t exist, court papers show. Tyson slashed payments to the ranch, and Easterday is now almost out of money.
The business projects it will run out of food for the animals on Thursday and can’t buy more, according to court papers. Tyson has agreed to give Easterday cash to purchase feed, but because the ranch is also in default on a credit line, a bankruptcy judge would need to bar creditors from laying claim to the money.