Oregon’s newest large dairy has filed for bankruptcy a day before thousands of its cattle was set to be sold to repay a major creditor.
The Capital Press reports that Lost Valley Farm filed for Chapter 11 bankruptcy late Thursday. The auction set for Friday was called off.
This month, an Oregon judge ordered the dairy farm owner, Greg te Velde, to cooperate with an auction. The creditor, Rabobank, sued seeking to foreclose on the dairy’s assets, which serve as collateral for $60 million in defaulted loans.
Lost Valley Farm began operating last year, over the objection of environmentalists who feared the big dairy would be a polluter.
The state earlier this year accused the dairy of endangering drinking water by mismanaging manure and wastewater. The sides reached a settlement in March, allowing the dairy to continue operations in a limited capacity.
Thursday’s bankruptcy petition filed in California stays all foreclosure actions by creditors including the auction. Te Velde also has operations in California.
Source: The News & Observer