Omtron USA is fighting back against farmers in the North Carolina region who filed suit against the poultry processing company in 2011.
Omtron sued a group of more than 30 farmers in bankruptcy court on May 10 in what's known as an adversary proceeding, according to reports.
More than 30 chicken producers sued the company in 2011 after it began to slim down local operations. Omtron acquired the Townsends assets in February of 2011, but began laying off more than 100 workers within a few months and had practically shut down by the summer of 2012. The farm, independent businesspeople who sold chickens to Townsends under contract, accused Omtron of breaching those contracts and moved to put liens on some of the company's assets in the state. The farmers allege they are owed $9 million.
The original lawsuit is now on hold as Omtron has filed for bankruptcy protection.
The company is now asking the court to declare the liens invalid.
Omtron sued a group of more than 30 farmers in bankruptcy court on May 10 in what's known as an adversary proceeding, according to reports.
More than 30 chicken producers sued the company in 2011 after it began to slim down local operations. Omtron acquired the Townsends assets in February of 2011, but began laying off more than 100 workers within a few months and had practically shut down by the summer of 2012. The farm, independent businesspeople who sold chickens to Townsends under contract, accused Omtron of breaching those contracts and moved to put liens on some of the company's assets in the state. The farmers allege they are owed $9 million.
The original lawsuit is now on hold as Omtron has filed for bankruptcy protection.
The company is now asking the court to declare the liens invalid.
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