Bad Deal
- Thread starter larryshoat
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Angus Cowman
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very bad deal
I know most of us that are running cows as a living can't afford losses like that and it would put us under
it would be like going to work everyday and at the end of the yr finding out all you had worked for was taken away and you still had all your bills to pay with nothing in hand to do it with
I know most of us that are running cows as a living can't afford losses like that and it would put us under
it would be like going to work everyday and at the end of the yr finding out all you had worked for was taken away and you still had all your bills to pay with nothing in hand to do it with
dieselbeef
Well-known member
they were makin good returns tho...14k for 20 head o steer aint bad...
john250
Well-known member
Finding "hard" information on this situation is like...actually I know more about the US State Dept and military than I know about this.
I didn't get burned--but I was planning to sell the next week when this story broke on a Friday. My thanks to whoever posted that link here on CT.
The market tanked for a week, since Eastern bought more than half the feeders out of this part of the country, but I still have the calves so I'm OK.
It doesn't seem like a court appointed receiver is going to be able to do a very good job of preserving the assets in this case. Cattle are a unique asset, since they need to be fed and watered. When they are "finished" they need to go to the packer. It isn't possible to just put a fence around them and hold them until the auditors and the courts decide who gets what.
Someone needs to talk to the press, on the record.
I didn't get burned--but I was planning to sell the next week when this story broke on a Friday. My thanks to whoever posted that link here on CT.
The market tanked for a week, since Eastern bought more than half the feeders out of this part of the country, but I still have the calves so I'm OK.
It doesn't seem like a court appointed receiver is going to be able to do a very good job of preserving the assets in this case. Cattle are a unique asset, since they need to be fed and watered. When they are "finished" they need to go to the packer. It isn't possible to just put a fence around them and hold them until the auditors and the courts decide who gets what.
Someone needs to talk to the press, on the record.
larryshoat
Well-known member
Angus Cowman":1ad0k5ws said:
That's what I was thinking. I sent a load of steers last Monday and have another load go this Monday, I'll get the check for the first load at the same time I drop off the second load, if something like this happened I would have $80,000 worth of cattle gone and no money. I would have a hard time taking a hit like that, a scary thought. When we read about something like this in a magazine, somehow we become desensitized in terms of the damage it has done to these people. As you say it could very well be the financial undoing of these folks. Sad!!!
Larry
Angus Cowman
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That isn't out of realitydieselbeef":1xkb7il7 said:
that is just $700 pr hd so a 6wt calve that is only $1.16 r lb
The load I sent back in july was $1.22 for 650 wts
larryshoat
Well-known member
john250":3iwryab5 said:
The problem in these kinds of cases is that there are no assets, it's a giant pyramid scheme where an ever increasing amount of money was loaned on cattle that do not exist. I saw all this when Producers Livestock got burned on that deal, there were no cattle, that was $12 million. In that case they're sales were shut down for a week, everybody got their money.
Larry
john250
Well-known member
Larry, I remember the Producers deal too. I thought Producers had loaned money against phantom cattle?
In the Eastern case, aren't there a lot of cattle in feedlots or backgrounding operations? The current holders of those cattle paid good money--but they can't be sure they own clear title to them because the broker didn't pay the farmer. I've seen speculation in print about it. What about the cattle that were on the truck when an auction market managed to get the truck turned around? I've read there were some cases of this. Did the market get those calves back to the sellers? Or what happened to them?
My impression, with no "inside" knowledge, is that this is not really a case of phantom cattle. Only the receiver could know for sure, and she isn't talking yet.
I'd say a 400 lb steer, bought by Eastern and sold to a feedlot will be T-bones and ribeyes long before this case is finished in the courts.
In the Eastern case, aren't there a lot of cattle in feedlots or backgrounding operations? The current holders of those cattle paid good money--but they can't be sure they own clear title to them because the broker didn't pay the farmer. I've seen speculation in print about it. What about the cattle that were on the truck when an auction market managed to get the truck turned around? I've read there were some cases of this. Did the market get those calves back to the sellers? Or what happened to them?
My impression, with no "inside" knowledge, is that this is not really a case of phantom cattle. Only the receiver could know for sure, and she isn't talking yet.
I'd say a 400 lb steer, bought by Eastern and sold to a feedlot will be T-bones and ribeyes long before this case is finished in the courts.
upfrombottom
Well-known member
In Arkansas if you write a check, and it is returned for any reason, its a criminal offence. It don't matter if you file bankruptcy or not, you are still liable for that check. If the check or a group of checks total $2000 or more, it is a felony. The only defence you you have is for the amount of the fine which depends on what the circumstances were and if you made it good before the case went to court. Unfortunately I have to deal with this on a regular basis. The District Prosecutor handles the cases and will automatically receive a fee as will the person to whom the check is written, the fines or jail time are added on top of that. I have never not been paid for a check that has went to court. Even when the person or company has filed bankruptcy. Funny how hidden assets are suddenly found, when they are facing a jail sentence.
Its a totally different story if they were sold on credit, where a contract was made for future payment. Bankruptcy will put those debts in another court. But I'm sure lawyers will drag all the cases out until everyone is bankrupt except themselves.
Its a totally different story if they were sold on credit, where a contract was made for future payment. Bankruptcy will put those debts in another court. But I'm sure lawyers will drag all the cases out until everyone is bankrupt except themselves.
larryshoat
Well-known member
john250":3rmusa15 said:
Yes, that is what happened. He was showing credit the same cattle over and over, hauling them to different locations. In this case I would think the bank loan and the bad checks should be covered by cattle in inventory, but my guess is that there are no cattle in inventory. I don't know that I'm just guessing.
Producers is right back loaning money on big deals that you wonder how it's working. I guess it's good till it ain't.
Larry
kenny thomas
Well-known member
I know of a guy in KY that has been taking care of a load of calves from Eastern. He has been told that the cattle will be picked up but no one will even talk to him about who will pay him for his feed and labor. He has about $7,000 in feed cost alone.
larryshoat
Well-known member
kenny thomas":g1kr5jga said:
Tell him not to worry, somebody will come pick em up when their fat.
Larry
