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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.
Courtesy of Nicole Berg
Now, Easterday Ranches has filed for bankruptcy in federal court.
This follows accusations by Tyson Fresh Meats, Inc. based in Dakota Dunes, South Dakota. Tyson Fresh Meats employs more than 41,000 people and is one of the largest meat processing companies in the U.S.
Tyson alleges that Easterday invented 200,000 head of cattle on paper then “fed” the fictitious beasts. Then, Easterday sold its prime cattle feedlot to a competing meat company. In its own lawsuit against Easterday, Tyson wants at least $225 million in compensation. In its bankruptcy filing, Easterday acknowledged that it owed Tyson a debt in the same amount.
Easterday s North Lot is one of the largest concentrated cattle feeding operations in Washington. It was sold Jan. 22 to AB Livestock, a Tyson competitor. Credit: Courtesy of Franklin County, Washington
Cattle Wars: Amid Lawsuit, WAâs Easterday Ranches Sells Big Feed Property To Tyson Competitor By
In a deepening cattle war, Easterday Ranches, Inc. has sold its so-called âNorth Lotâ property in Franklin County, Washington, to a beef competitor of Tyson Fresh Meats, Inc.
As the public media Northwest News Network reported Wednesday, Tyson recently filed a suit against Washington-based Easterday Ranches seeking to get a neutral third party to take over the business until accounts could be settled. It came after Easterday allegedly made up hundreds of thousands of cattle on paper and fictitiously fed them, costing Tyson more than $225 million.