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Easterday reaches global settlement that resolves all major disputes
By Sarah Lizee
Olympia, Wash., April 18 – Easterday Ranches, Inc. and Easterday Farms said they have reached a global settlement that resolves the disputes of every major constituent in their Chapter 11 cases, according to court documents filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Washington.
The debtors said the settlement represents the successful balancing of a variety of competing interests held by creditors and other stakeholders following the post-petition liquidation of substantially all of the debtors’ assets and extensive litigation with many parties in interest, including the Easterday family, 3E Properties, Tyson Fresh Meats, Inc. and Washington Trust Bank, among others.
Notably, the companies said the term sheet paves the way for a 100% recovery to general unsecured creditors of Easterday Farms and a material recovery to general unsecured creditors of Easterday Ranches, while avoiding litigation.
“The debtors believe that the global settlement is a representative triumph of the Chapter 11 process and a pivotal moment in these Chapter 11 cases,” the companies said in the court documents.
The debtors said the settlement has the support of its two largest unsecured creditors, which are Tyson and Segale Properties, LLC.
“Given the spirited litigation in these Chapter 11 cases and the extensive investigations into the events giving rise thereto, the global settlement represents a hard fought, arm’s-length and equitable resolution of these Chapter 11 cases,” the companies said.
Under the global settlement, the effective date of the debtors’ Chapter 11 plan must occur by July 31.
Easterday Ranches is a Pasco, Wash.-based cattle operator. The company filed bankruptcy on Feb. 1, 2021 under Chapter 11 case number 21-00141.
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