Eastern Livestock trustee authorized to settle forward purchase contracts | TSLN.com

Eastern Livestock trustee authorized to settle forward purchase contracts

On Jan. 4, the U.S. Bankruptcy Judge in the Eastern Livestock Chapter 11 bankruptcy case entered an order granting an emergency motion filed by the trustee James Knauer on Dec. 30 asking for permission to settle forward purchase contracts. Judge Basil Lorch’s order authorizes the trustee to immediately settle (by cancellation or otherwise) forward purchase contracts under which Eastern Livestock would have been obligated to purchase cattle.

The trustee’s authority to settle the forward purchase contracts includes the authority to sell any forward purchase contract by assuming and/or assuming and assigning any forward purchase contract and provides that such assumption and assignment (free and clear of liens) is valid. Finally, Judge Lorch’s order provides that by Jan. 31 and by the end of each succeeding month in which an outstanding forward purchase contract exists, the trustee is required to file a report identifying the actions that the trustee has taken under the Jan. 4 order.

In addition to the trustee’s motion seeking permission to settle forward purchase contracts, the trustee also filed an application for approval to employ Development Specialists, Inc. (specifically Elizabeth Lynch) as a consultant to assist the chapter 11 trustee. Lynch had been the state-court appointed receiver in this case, authorized to operate Eastern’s business until Knauer was appointed trustee.

“LMA is pleased to see that trustee James Knauer recognizes the efforts that Liz Lynch has already put into this situation over the last 60 days, and will be drawing on her expertise as we move forward,” LMA CEO Mark Mackey said Wednesday, Jan. 5.

On Jan. 4, the U.S. Bankruptcy Judge in the Eastern Livestock Chapter 11 bankruptcy case entered an order granting an emergency motion filed by the trustee James Knauer on Dec. 30 asking for permission to settle forward purchase contracts. Judge Basil Lorch’s order authorizes the trustee to immediately settle (by cancellation or otherwise) forward purchase contracts under which Eastern Livestock would have been obligated to purchase cattle.

The trustee’s authority to settle the forward purchase contracts includes the authority to sell any forward purchase contract by assuming and/or assuming and assigning any forward purchase contract and provides that such assumption and assignment (free and clear of liens) is valid. Finally, Judge Lorch’s order provides that by Jan. 31 and by the end of each succeeding month in which an outstanding forward purchase contract exists, the trustee is required to file a report identifying the actions that the trustee has taken under the Jan. 4 order.

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In addition to the trustee’s motion seeking permission to settle forward purchase contracts, the trustee also filed an application for approval to employ Development Specialists, Inc. (specifically Elizabeth Lynch) as a consultant to assist the chapter 11 trustee. Lynch had been the state-court appointed receiver in this case, authorized to operate Eastern’s business until Knauer was appointed trustee.

“LMA is pleased to see that trustee James Knauer recognizes the efforts that Liz Lynch has already put into this situation over the last 60 days, and will be drawing on her expertise as we move forward,” LMA CEO Mark Mackey said Wednesday, Jan. 5.

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