Easterday files liquidation plan; statement hearing set for Sept. 22

By Sarah Lizee

Olympia, Wash., Aug. 3 – Easterday Ranches, Inc. and Easterday Farms filed a Chapter 11 plan of liquidation and related disclosure statement Monday in the U.S. Bankruptcy Court for the Eastern District of Washington.

According to the disclosure statement, the plan contemplates an orderly liquidation of the remaining assets of both debtors and the distribution of available assets to creditors through the mechanism of separate liquidation trusts for each debtor.

The respective distributable assets of each debtor will be placed in a liquidation trust for each debtor, and the general unsecured creditors of each debtor will receive beneficial interests in the respective liquidation trust based on the allowed claims of those general unsecured creditors.

As of Monday, the debtors and other stakeholders in the case have not been able to reach an agreement concerning an allocation of the net proceeds from the sale of their assets. The net sale proceeds will remain in escrow pending an allocation determination.

All allowed administrative claims, allowed professional fee claims, allowed priority tax claims, allowed DIP claims, allowed other secured claims, and allowed priority claims will be paid or otherwise satisfied in full.

A hearing on the disclosure statement is scheduled for Sept. 22.

Easterday Ranches is a Pasco, Wash.-based cattle operator. The company filed bankruptcy on Feb. 1 under Chapter 11 case number 21-00141.

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