A federal judge is authorizing the sale of assets in the case of a Canadian-owned swine company accused of financial misconduct.
Compeer Financial, a loan-lending bank, said Sunterra orchestrated a check-kiting scheme that put them over $30 million in debt. Sunterra denies the allegations.
The bank’s collateral was 110,000 pigs and other Sunterra-owned assets based in South Dakota.
Now, federal judge Eric Schulte is allowing receiver Pipestone Management to sell the collateral to The Pork Group Inc., a subsidiary of Tyson Foods, for $15 million. TPG has pigs in approximately 65% of Sunterra’s 150 pig-barns.
As part of the agreement, TPG plans to offer employment to all current Sunterra employees, and the money is put towards the credit owed to Compeer Financial.
At closing, the purchase price is to be paid into a closing escrow and remains there until ordered by the South Dakota District Court.
