Tyson Foods Inc.’s meat-producing unit and bankrupt Easterday Ranches Inc. have a court-approved pact that will keep cattle moving toward the market while the ranch operation and Tyson try to settle their differences in bankruptcy court, WSJ Pro Bankruptcy reported. Tyson Fresh Meats Inc. has accused Easterday of a $200 million fraud involving allegedly phony billing by the ranching business that was supposed to be caring for its cattle. More than 50,000 head of cattle were left on Easterday’s Washington state property earlier this month when the family-run ranch business filed for chapter 11 protection. Tyson had sued, accusing Easterday of billing for feed and care for nonexistent cattle. At that session, Judge Whitman Holt approved the settlement, after hearing from Easterday Ranches that it had few options. With no long-term source of financing in sight, Easterday Ranches lawyer Maxim Litvak said the business had no choice but to allow Tyson to take some of its cattle away. Tyson is the ranch’s sole customer and the $1.4 million that Easterday will receive as part of the pact is the only ready cash coming in right now, the ranch’s lawyer said.
