|
Bankrupt Omtron sues chicken growers
Story Date: 5/15/2013
| |
Source: Tom Johnston, MEATINGPLACE, 5/14/13
Omtron USA, the Ukrainian-owned company that acquired Townsends Inc. in February 2011 and in November 2012 filed for bankruptcy, filed a lawsuit Friday against more than 30 contract chicken growers that are suing the company for more than $9 million, according to court documents.
The growers sued Omtron in 2011 after the company began to reduce operations at processing facilities in North Carolina’s Chatham County. They accused the company of breaching contracts, fraud and unfair and deceptive acts and filed liens on some of its assets in the state.
That lawsuit was put on hold in 2012 when Omtron filed for bankruptcy, but the chicken growers added themselves as creditors in the bankruptcy case in the Middle District of North Carolina.
Omtron’s lawsuit is an adversary proceeding, which is meant to determine the validity of liens. The company wants the court to declare the liens invalid, arguing they don’t apply to the North Carolina assets because the company is a legal resident of the state.
Omtron is based in Georgetown, Del., but most of its assets are located in North Carolina.
The company’s lawsuit also contends that the chicken farmers failed to properly record their liens with local authorities.
For more stories, go to http://www.meatingplace.com/.
|
|
|
|
