Easterday Ranches’ Chapter 11 plan accepted by all creditor classes

By Sarah Lizee

Olympia, Wash., July 15 – Easterday Ranches, Inc.’s and Easterday Farms’ Chapter 11 plan of liquidation was accepted by all voting creditor classes, according to a ballot tabulation filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Washington.

Specifically, 31 holders, or 93.94% in number, of $9.84 million, or 90.29% in amount, of Farms general unsecured creditor claims voted to accept the plan, while two holders, or 6.06% in number, of $1.06 million, or 9.71% in amount, voted to reject the plan.

Meanwhile, 21 holders, or 95.45% in number, of $2.13 million, or 99.69% in amount, of Ranches general unsecured creditor claims voted to accept the plan, while one holder, or 4.55% in number, of $6,631, or 0.31% in amount, voted to reject the plan.

And, Tyson and Segale, with claims of $261.32 million and $7.83 million, respectively, both voted to accept the plan.

The plan confirmation hearing is scheduled for July 19.

As previously reported, the company said it entered into a settlement that represents the 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.

All allowed administrative claims, professional fee claims, priority tax claims, secured claims and priority claims will be paid in full.

Holders of Farms general unsecured claims will be paid in full.

Holders of Ranches general unsecured claims will receive a pro rata share of the class 4 initial payment, which is $1.71 million, and their pro rata share of the class 4 net distributable assets.

Tyson will receive a pro rata share of the class 5 initial payment, which is $1.57 million, a pro rata share of the class 5 net distributable assets, a pro rata share of the proceeds of the Easterday family contribution instruments, and the assignment of the North Lot actions.

Segale will receive its pro rata share of the class 6 initial payment, which is $922,000, its pro rata share of the class 6 net distributable assets and its pro rata share of the proceeds of the Easterday family contribution instruments.

Holders of subordinated claims, intercompany claims and interests will not receive any payment.

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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