The companies allege Compeer is the “cause of the current misfortune” and has “tried to turn the causation of those effects around on counterclaim plaintiffs.”
The swine companies asked the court to dismiss Compeer’s lawsuit.
“Compeer knew, for years, about any alleged cash flow issues with counterclaim plaintiffs and repeatedly told counterclaim plaintiffs that it would work with them, understood their cashflow and projections and would be there for counterclaim plaintiffs to find future solutions,” the companies told the court.
“The transfers that Compeer now characterizes as alleged ‘check kiting’ have gone on for years with Compeer’s knowledge and assistance. In fact, Compeer assisted counterclaim plaintiffs move money between accounts and increased counterclaim plaintiffs’ credit line advances to help facilitate those transfers.”
The swine companies said Compeer is not “some disinterested lender” that just discovered some “untoward” conduct.
“Compeer not just knew but aided and abetted counterclaim plaintiffs with that conduct,” the companies said. “The only difference is that Compeer recently decided to recharacterize that conduct from standard business practices to something it was not.”
The swine companies said as early as 2020, Compeer had discussions with them about their “revenue cycle and account management” that included the “nature of the cashflow and payments made between accounts.”
The companies said in their counterclaims that Compeer “understood that overcommitments may happen” during the course of operation of swine businesses.
In July of 2023, the swine companies said they began discussing with Compeer the possibility of merging Sunwold, Sunterra and Lariagra into a “combined unit” in the U.S.
“During the years that Compeer had both firsthand knowledge and discussions with counterclaim plaintiffs about conduct that Compeer now asserts as conduct constituting ‘check kiting,'” the companies said in the court filing.
“Compeer reported to other financial institutions that counterclaim plaintiffs were not in default and told counterclaim plaintiffs that counterclaim plaintiffs’ conduct was consistent with applicable industry standards.”
Read more on DTN:
“Swine Company Forced Into Receivership,”
Todd Neeley can be reached at [email protected].
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