A controversial Oregon dairy filed for Chapter 11 bankruptcy protection Thursday night, blocking an auction Friday to sell off its 14,500 cattle herd in Boardman, Ore.
The liquidation of Lost Valley Farm’s 10,500 cows and 4,000 replacement heifers was ordered in Oregon state court at the behest of Rabobank, a major farm lender seeking repayment for $60 million in defaulted loans.
However, the bankruptcy petition filed by Greg te Velde, the dairy’s owner, in the U.S. Bankruptcy Court for the Eastern District of California automatically stays all foreclosure actions by creditors, including the auction scheduled for April 27 at 11 a.m.
Under Chapter 11 bankruptcy, companies typically develop reorganization plans to restructure their debt. Greg te Velde declined to comment on the bankruptcy case.
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