CapitalPress.com
Friday, July 2, 2021
wife and mother filed for
bankruptcy in February as
he faced federal charges
for defrauding Tyson Foods
and another company of
$244 million.
Easterday
contracted
to buy and feed cattle for
Tyson’s plant in Pasco and
billed the companies for
nonexistent cattle. Much of
the scheme’s proceeds cov-
ered up losses incurred by
Easterday in commodity
futures contracts, according
LEGAL
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF WASHINGTON
In re
Chapter 11
EASTERDAY RANCHES, INC., et al.
Lead Case No. 21-00141-11
Jointly Administered
Debtors. 1
NOTICE OF SALE OF PROPERTY BY AUCTION,
SALE OBJECTION DEADLINE, AND SALE HEARING
NOTICE TO CREDITORS OF EASTERDAY RANCHES, INC. (“RANCHES”); EASTERDAY FARMS (“FARMS”); CODY EASTERDAY
AND DEBBY EASTERDAY, HUSBAND AND WIFE, KAREN EASTERDAY, IN HER INDIVIDUAL CAPACITY AND AS THE PERSONAL
REPRESENTATIVE OF THE ESTATE OF GALE EASTERDAY 2 (COLLECTIVELY, THE “EASTERDAYS”).
PLEASE TAKE NOTICE OF THE FOLLOWING MATTERS THAT MAY AFFECT YOUR RIGHTS:
On February 1, 2021, and February 8, 2021, respectively, Ranches and Farms (together, the “Debtors”), commenced chapter 11 bankruptcy cases (the
“Bankruptcy Cases”) in the U.S. Bankruptcy Court for the Eastern District of Washington (the “Bankruptcy Court”).
The Debtors operate commercial farms and ranches that utilize multiple farms, feedlots, ranches, and other facilities that are commonly referred to as
Nine Canyon Farm, Goose Gap Farm, River Farm, Cox Farm, Farm Manager House, and Storage Complex (the “Property”). The Property is owned in part
by the Debtors (the “Debtor Property”) and in part by the Easterdays (the “Easterday Property”).
To maximize the value of the Property, the Debtors and the Easterdays determined that the Property should be marketed for sale together. Accordingly,
on March 26, 2021, the Debtors filed two motions with the Bankruptcy Court: (i) a motion to approve a cooperation agreement (the “Cooperation Agreement”)
between the Debtors and the Easterdays (together, the “Sellers”) and (ii) a motion (x) establishing a process to sell the Property and (y) to approve the sale of
the Property at the conclusion of such process (the “Sale Motion”).
On April 28, 2021, the Bankruptcy Court entered an order (the “Cooperation Agreement Order”) approving the Cooperation Agreement between
and among the Debtors and the Easterdays. On April 29, 2021, the Bankruptcy Court entered the Bidding Procedures Order which, among other things, (i)
approved procedures for submitting offers and bidding at an auction for the Property (“Bidding Procedures”), (ii) approved procedures for the assumption and
assignment of certain executory contracts and unexpired leases, (iii) scheduled a hearing on the sale, and (iv) granted related relief.
On May 19, 2021, the Sellers, entered into a purchase and sale agreement (the “Stalking Horse APA”) with Farmland Reserve, Inc. (“FRI” or the
“Stalking Horse Bidder”), pursuant to which, and subject to higher and better offers in accordance with the Bidding Procedures:
(i) the Debtors shall acquire the Easterday Property, upon which transfer all of the Easterday Property shall constitute
property of the Debtors’ bankruptcy estates in the Bankruptcy Cases and for which the Easterdays shall receive, subject to the approval
of the Bankruptcy Court, an allocable interest in the Net Sale Proceeds, as such term is defined in the Cooperation Agreement;
(ii) the Debtors shall sell, assign, transfer, convey and deliver to FRI, and FRI shall acquire and accept from Debtors, free
and clear of all Claims, Rights, and Encumbrances (as defined in the proposed Sale Order attached to the Stalking Horse APA), all of
the Debtors’ rights, title and interest in and to the Property; and
(iii) FRI shall pay $188,000,000 plus any transfer taxes or the like “Purchase Price” for the Property ((i) through (iii), the
“Sale”).
Also on May 19, 2021, the Debtors supplemented the Sale Motion with their motion to designate FRI as the Stalking Horse Bidder, approve the bid
protections in the Stalking Horse APA, and supplement the relief requested by the Debtors in the Sale Motion to include authorization for the Debtors to
acquire all rights, title and interest in and to the Easterday Property for the purpose of including the Easterday Property in the Sale, pursuant to the Stalking
Horse APA (“Supplemental Bidding Procedures Motion”).
On May 28, 2021, the Bankruptcy Court entered an order granting the Supplemental Bidding Procedures Motion, pursuant to which the Bankruptcy
Court (i) approved the Stalking Horse APA as the Stalking Horse Bid and FRI as the Stalking Horse Bidder, (ii) authorized the Debtors to enter into and
perform under the Stalking Horse APA, subject to higher or otherwise better offers by other qualified bidders, and (iii) approved the Debtors’ request to
supplement the relief requested by the Debtors in the Sale Motion to include authorization for the Debtors to acquire all rights, title and interest in and to the
Easterday Property for the purpose of consummating the Sale with the Stalking Horse Bidder, subject to higher or otherwise better offers by other qualified
bidders at an auction (the “Auction”) to be held on June 14, 2021, commencing at 10:00 a.m. (Pacific Time) (“Supplemental Bidding Procedures Order”).
THE BANKRUPTCY COURT HAS CURRENTLY SET JUNE 30, 2021 AT 4:00 P.M. (PACIFIC TIME) AS THE DEADLINE FOR ALL
OBJECTIONS TO THE SALE (THE “SALE OBJECTION DEADLINE”).
All objections to the Sale and related relief must: (a) be in writing; (b) be signed by counsel or attested to by the objecting party; (c) conform to the
Federal Rules of Bankruptcy Procedure and the Local Rules of the Bankruptcy Court (“Local Rules”); (d) be filed with the Clerk of the Bankruptcy Court, 402
E. Yakima Avenue, Yakima, WA 98901 by no later than the Sale Objection Deadline; and (e) be served in accordance with the Local Rules so as to be received
on or before the Objection Deadline by the following: (i) counsel to the Debtors: (a) Bush Kornfeld LLP, 601 Union Suite, Suite 500, Seattle, WA 98101,
Attention: Armand J. Kornfeld (jkornfeld@bskd.com) and Thomas A. Buford (tbuford@bskd.com); and (b) Pachulski Stang Ziehl & Jones, LLP, 10100 Santa
Monica Boulevard, 13th Floor, Los Angeles, CA 90067, Attention: Richard M. Pachulski (rpachulski@pszjlaw.com), Ira D. Kharasch (ikharasch@pszjlaw.
com), Jeffrey W. Dulberg (jdulberg@pszjlaw.com) and Jason H. Rosell (jrosell@pszjlaw.com); (ii) the Office of the United States Trustee for the Eastern
District of Washington, 920 W Riverside Ave, Suite 593, Spokane, WA 99201, Attn: Gary W. Dyer (Gary.W.Dyer@usdoj.gov); (iii) counsel to the Stalking
Horse Bidder, Stoel Rives LLP, 600 University Street, Suite 3600, Seattle, WA 98101, Attention: Oren B. Haker (oren.haker@stoel.com) and Ellen E. Ostrow
(ellen.ostrow@stoel.com); and (iv) those parties who have filed notices of appearance and/or requested service of all motions and pleadings in these Chapter
11 Cases prior to the date of service thereof.
THE SALE SHALL BE FREE AND CLEAR OF ALL LIENS, CLAIMS, ENCUMBRANCES OR OTHER INTERESTS UNDER
SECTION 363 OF THE BANKRUPTCY CODE. THE ASSIGNMENT OF CERTAIN OF THE SELLERS’ CONTRACTS AND LEASES MAY
BE APPROVED AND AUTHORIZED BY THE BANKRUPTCY COURT ABSENT A TIMELY OBJECTION BY ANY PERSON OR ENTITY
CLAIMING AN INTEREST OR RIGHT IN SUCH CONTRACT OR LEASE. THE FAILURE OF ANY PERSON OR ENTITY TO FILE
AND SERVE AN OBJECTION ON OR BEFORE THE SALE OBJECTION DEADLINE MAY BE DEEMED CONSENT TO ANY SALE OR
ASSIGNMENT APPROVED BY THE BANKRUPTCY COURT AND MAY BE A BAR TO THE ASSERTION OF ANY LIENS, CLAIMS,
RIGHTS, ENCUMBRANCES OR OTHER INTERESTS IN THE PROPERTY SOLD, ASSIGNED OR OTHERWISE TRANSFERRED TO THE
STALKING HORSE BIDDER OR THE SUCCESSFUL BIDDER(S), AND MAY BE A BAR TO ANY RECOVERY AGAINST THE STALKING
HORSE BIDDER OR OTHER SUCCESSFUL BIDDER(S).
IF YOU ARE A CREDITOR OF THE SELLERS OR A CONTRACT OR LEASE COUNTERPARTY TO ANY OF THE SELLERS, YOUR
RIGHTS MAY BE AFFECTED BY THE SALE OF THE PROPERTY TO THE STALKING HORSE BIDDER OR OTHER SUCCESSFUL
BIDDER(S). You should review the documents related to the Sale and discuss them with your attorney. If you do not have an attorney, you may wish to
consult one. Sale documents, including the Stalking Horse APA, Sale Motion, Bidding Procedures Order, Supplemental Bidding Procedures Order, and
proposed sale order, can be obtained through the Bankruptcy Court or by requesting copies from the Debtors’ bankruptcy counsel by email to Jason Rosell
(email: jrosell@pszjlaw.com). If you do not want the Bankruptcy Court to approve the Sale, you must file an objection with the Bankruptcy Court by
the Sale Objection Deadline as set forth above.
A hearing to confirm the results of the Auction and approve the sale of the Property (the “Sale Hearing”) will be held before the Honorable Whitman
Holt, United States Bankruptcy Judge, on July 14, 2021 at 11:00 a.m. (PT), or at such other time as the Bankruptcy Court permits, in the United States
Bankruptcy Court for the Eastern District of Washington, 402 E. Yakima Avenue, Second Floor Courtroom, Yakima, WA 98901. Parties may appear at the
Sale Hearing by telephone. To make a telephonic appearance, parties must call 877-402-9757; code 7036041. The Debtors may adjourn or reschedule the
Sale Hearing one or more times with prior notice filed on the docket in the Bankruptcy Cases or without prior notice by making an announcement at the Sale
Hearing.
Dates set forth in this notice are subject to change, and further notice of such changes may not be provided except through announcements in open court
and/or the filing of notices in the Bankruptcy Cases. Interested persons or entities are encouraged to monitor the electronic court docket for further updates.
1
2
The Debtors along with their case numbers are as follows: Easterday Ranches, Inc. (21-00141) and Easterday Farms, a Washington general
partnership (21-00176).
The administration of the Estate of Gale Easterday is currently pending in Franklin County Superior Court, Case No. 21-450004-11.
S247840-1
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the
following vehicle will be sold,
for cash to the highest bidder, on
07/12/2021. The sale will be held
at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2017 NISSAN ROGUE UT
VIN = KNMAT2MV2HP505585
Amount due on lien $1575.00
Reputed owner(s)
CRAIG STEPHEN RUBIOLO
JP MORGAN CHASE BANK NA
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the
following vehicle will be sold,
for cash to the highest bidder, on
07/12/2021. The sale will be held
at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2015 TOYOTA CAMRY 4DR
VIN = 4T1BF1FK0FU896397
Amount due on lien $1555.00
Reputed owner(s)
MALCOLM LEE ASH
TOYOTA MOTOR CREDIT CORP
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the
following vehicle will be sold,
for cash to the highest bidder, on
07/05/2021. The sale will be held
at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2014 SUBARU IMPREZA 4W
VIN = JF1GR7E62EG248748
Amount due on lien $2435.00
Reputed owner(s)
CAMERON OAKES MOSSMAN
OREGON COMMUNITY C.U.
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the
following vehicle will be sold,
for cash to the highest bidder, on
07/05/2021. The sale will be held
at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2013 KIA SPORTAGE UT
VIN = KNDPB3A29D7528675
Amount due on lien $2435.00
Reputed owner(s)
ALONDRA GARCIA CABALLERO
WELLS FARGO AUTO
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the
following vehicle will be sold,
for cash to the highest bidder, on
07/12/2021. The sale will be held
at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2020 MITSUBISHI MIRAGE 4DR
VIN = ML32F3FJ0LHF08778
Amount due on lien $1435.00
Reputed owner(s)
SKYLEE BARCLAY & KODY KIRBY
SANTANDER CONSUMER USA
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the
following vehicle will be sold,
for cash to the highest bidder, on
07/12/2021. The sale will be held
at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2017 JEEP PATRIOT UT
VIN = 1C4NJPBA7HD200900
Amount due on lien $1455.00
Reputed owner(s)
JOHN & MICHELLE BACH
EXETER FINANCE LLC
S251108-1
“We are already in the
process of working with
Farmland Reserve ... to
close the transaction in a
timely way by the end of
July,” Pachulski said.
Farmland Reserve out-
bid by $1 million 100C
LLC, a Delaware-based
company linked to Micro-
soft co-founder Bill Gates.
The company has in the
past made significant farm-
land acquisitions.
Cody Easterday and his
S249844-1
George Plaven/Capital Press File
Cody Easterday
An Oregon farming
couple has filed a law-
suit claiming the USDA’s
loan forgiveness program
for minorities violates
the constitutional princi-
ple of equal justice under
the law.
The complaint filed
by Kathryn and James
Dunlap of Baker City is
among at least nine sim-
ilar cases alleging the $4
billion program unlaw-
fully excludes white
farmers from receiving
loan assistance.
Though the debt relief
program has already been
enjoined nationwide, the
lawsuit aims to test its
constitutionality in the
9th U.S. Circuit Court of
Appeals, which has juris-
diction over nine Western
states.
Since the legal ques-
tion will likely be
decided by the U.S.
Supreme Court, having
the issue “percolate” in
several appellate juris-
dictions will help guide
its thinking, said Wen Fa,
an attorney with Pacific
Legal Foundation, a non-
profit organization that’s
representing the Dunlaps.
“It seems like an issue
a lot of people are inter-
ested in, and rightfully
so,” he said.
The Oregon lawsuit
will also preserve the
plaintiffs’ interests if
the current nationwide
injunction is overturned
on appeal, Fa said.
“We think they have
a great story. They are
both people with second
jobs,” who rely on off-
farm income to pay their
USDA loans, he said.
“The only reason they
were not able to obtain
this assistance is because
of their skin color.”
The Dunlaps, who
raise cattle and hay, took
out a USDA loan to pay
for additional livestock
and farming equipment
and would otherwise be
eligible for debt relief
except for their race, the
complaint said.
In addition to farm-
ing, Kathryn has a full-
time sales job and James
works full-time as a rail-
road engineer while both
take care of their infant
child.
The loan forgiveness
program is part of broader
COVID-19 relief legisla-
tion, the American Res-
cue Plan of 2021, which
was enacted in March.
Black, Native Amer-
ican, Hispanic, Asian,
Hawaiian and Pacific
Islander farmers are eli-
gible for payments of up
to 120% of their USDA
loans regardless of their
economic circumstances
or “whether they have
suffered any racial dis-
crimination,” the com-
plaint said.
The program wasn’t
“narrowly tailored to fur-
ther a compelling govern-
ment interest” or to “rem-
edy specific instances of
racial
discrimination,”
contrary to legal prec-
edents governing equal
protection under the law,
according to the lawsuit.
The complaint seeks
an injunction declaring
the loan forgiveness pro-
gram
unconstitutional
and making the assis-
tance available to all eli-
gible farmers.
Representatives of the
USDA’s Farm Service
Agency, which oversees
the program, were not
available for comment as
of press time.
On June 23, a federal
judge in Florida issued
a preliminary injunc-
tion blocking the USDA
from distributing pay-
ments because the pro-
gram would cause irrep-
arable harm and is likely
to be struck down as
unconstitutional.
While the program
aims to rectify the
USDA’s unfair lend-
ing practices in the past,
“Congress moved with
great speed to address
the history of discrimi-
nation, but did not move
with great care,” said
U.S. District Judge Mar-
cia Morales Howard.
“The
constitutional
right to equal protection
guarantees that racial
classifications will be
permitted only with ‘the
most exact connection
between the justification
and classification,’” she
said, citing case law.
In this case, however,
the law “appears to cre-
ate an inflexible, race-
based discriminatory pro-
gram that is not tailored
to make the individu-
als who experienced dis-
crimination whole,” the
judge said.
The USDA was also
prohibited from forgiv-
ing any loans under the
program under a June
10 temporary restrain-
ing order issued by
U.S.
District
Judge
William Griesbach in
Wisconsin.
“The obvious response
to a government agency
that claims it continues
to discriminate against
farmers because of their
race or national origin is
to direct it to stop: it is
not to direct it to inten-
tionally
discriminate
against others on the
basis of their race and
national origin,” he said.
By MATEUSZ PERKOWSKI
Capital Press
S251105-1
Farms and ranches
owned by Eastern Wash-
ington cattleman Cody
Easterday, who’s waiting
to be sentenced for wire
fraud, could be sold to the
Church of Jesus Christ of
Latter-day Saints by the
end of July, according to
a lawyer representing the
properties.
The church’s Farmland
Reserve Inc. submitted the
winning bid of $209 mil-
lion at a bankruptcy auc-
tion June 17. U.S bank-
ruptcy Judge Whitman
Holt in Yakima must OK
the sale at a hearing set for
July 14.
The deadline to object
to the sale was June 30.
“We, frankly, do not
anticipate any objections,
but you never know,” attor-
ney Richard Pachulski told
Holt at a hearing last week.
“I anticipate, with any luck,
that we will not have any
issue at the (sale) hearing.
to court records.
He pleaded guilty to one
count of wire fraud and
agreed to pay $244 million
in restitution. He faces up
to 20 years in prison and is
scheduled to be sentenced
in federal court Aug. 4.
Pachulski said he was
happy with the auction
results. Before the auction,
Farmland Reserve set the
minimum price by offering
$193 million.
“We always prefer more
money, but I think we did
reasonably well,” Pachul-
ski said.
The Easterdays’ other
creditors include Wash-
ington Trust Bank in Spo-
kane. Cody Easterday, his
wife and parents allegedly
defaulted on a $45 mil-
lion loan taken out in Sep-
tember, according to court
records. Cody Easterday’s
father, Gale Easterday,
died in a traffic accident in
December.
The bank has filed a
separate lawsuit in federal
bankruptcy court.
S251107-1
By DON JENKINS
Capital Press
Oregon farmers join litigation
against USDA minority loan
forgiveness program
S249842-1
Easterday representatives working on
completing sale to Mormon church
S251106-1
4
