Tyson Foods Inc.’s beef-producing unit has asked a judge to appoint a bankruptcy trustee to run Easterday Ranches Inc., which filed for chapter 11 protection after the food company sued it for alleged fraud, WSJ Pro Bankruptcy reported. Tyson said restructuring professionals who recently took over Pasco, Wash.-based Easterday allowed a significant land sale to go through just before its Feb. 1 bankruptcy filing. Much of the money from the $16 million sale of the feed lot went to pay professionals and insiders of the family-run operation who had steered the business into trouble, according to Tyson, Easterday’s sole customer. Tyson said that it is out roughly $200 million it funded Easterday to feed cattle that didn’t exist, adding it was forced to come up with more money last week to keep 54,000 cattle actually on Easterday’s ranch from starving. The push for a bankruptcy trustee from one of the country’s largest meat producers takes aim at alleged actions involving restructuring adviser Paladin Management Group, a consulting firm that works with distressed businesses. Paladin failed to prevent the land sale, according to Tyson’s motion calling for a trustee, which was filed Monday in U.S. Bankruptcy Court for Spokane and Yakima, Wash. A spokeswoman for Paladin said Easterday will respond to the motion at the appropriate time, adding the company doesn’t believe the appointment of a trustee is in the best interests of the estates.
