Cattle firm may face unplanned bankruptcy
An Indiana-based firm, which is under federal investigation for bad checks on cattle purchases, could be forced into an involuntary bankruptcy following a judge's ruling.
An Indiana-based firm, which is under federal investigation for bad checks on cattle purchases, could be forced into an involuntary bankruptcy following a judge's ruling.
In a U.S. bankruptcy court this week, Southeast Livestock Exchange, Moseley Cattle Auction and David Rings were among the companies looking to file a bankruptcy motion on behalf of Eastern Livestock Company, one of the largest cattle brokerages in the nation.
The companies claim Eastern Livestock paid them nearly $1.5 million for purchases for which they were never reimbursed, The Associated Press reports. Additionally, the petition specified that all creditors should receive equal treatment from the courts
Eastern Livestock now has 20 days to object to the motion, after which a judge would decide whether to begin the hearings, the news source says. The lawsuit follows a similar filing by Federal agriculture officials against the company making similar accusations about the company's purchasing methods.
Federal officials estimate that the company owes more than $130 million to more than 700 independent ranchers in nearly 30 states.
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