Easterday Ranches: Tyson requests appointment of Chapter 11 trustee

By Sarah Lizee

Olympia, Wash., Feb. 9 – Tyson Fresh Meats, Inc. is seeking appointment of a Chapter 11 trustee for Easterday Ranches, Inc.’s bankruptcy case, according to a motion filed Monday with the U.S. Bankruptcy Court for the Eastern District of Washington.

Tyson said in its motion that Easterday is responsible for a massive fraud upon itself and other creditors, but Easterday argues that it now has “clean hands” because it has retained Paladin Management to operate the company and has retained an independent board.

Tyson said that even after the fraud was uncovered and Easterday was operating under the support of Paladin, the company “engineered a surreptitious sale” of its largest unencumbered parcel in a fire sale transaction on the eve of bankruptcy, and then distributed over 85% of the proceeds, almost $13 million, to affiliates, insiders and professionals rather than to third-party creditors.

“[Easterday’s] management, however constituted, cannot be trusted to keep the interests of creditors of this estate, rather than other entities owned by the Easterday family, at heart,” Tyson stated.

“Everyone agrees the company needs management untainted by the Easterday family, providing new, independent guidance.

“That guidance should come from a trustee appointed in accordance with the Bankruptcy Code, not the proposed more expensive alternative including Paladin, which was selected by the Easterday family and which participated in (or at the least, failed to prevent) the final fraudulent and preferential transactions.”

A hearing is scheduled for March 8.

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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