News update:Mar 9, 2016

Omtron turns tables on chicken farmers

Omtron USA, which was being sued by chicken farmers prior to the company’s bankruptcy filing, has now turned the tables and filed a suit against the farmers.

In 2011Omtron bought the processing plants, feed mills and hatcheries of Townsends, family-owned chicken and egg producer based in Georgetown, Delaware, for about $24.9 million. Soon after the takeover, Omtron began to slim down the operation, prompting over 30 chicken farmers to sue the company for breach of contract, placing liens on some of the company’s assets.

When in 2012 Omtron itself filed for bankruptcy the farmers’ case was put on hold. In response the farmers got themselves added as creditors in the bankruptcy case. 

Last week in bankruptcy court Omtron sued the farmers in what’s known as an adversary proceeding. The company is asking the court to declare the liens invalid, saying its assets aren’t subject to such liens because it’s a legal resident of North Carolina. Omtron is organised as a Delaware entity, but most of its assets are in Chatham County and other areas of central North Carolina. The suit also claims that the farmers failed to take the necessary steps to have their liens recorded with local authorities.

World Poultry

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