A contentious situation has emerged regarding the recent sale of a previously closed HyLife pork processing plant located in Windom, Minnesota. The disagreement revolves around property taxes and involves both the buyer and the seller. Premium Iowa Pork, the buyer, is being challenged by the former owner, HyLife, over an alleged property tax oversight amounting to nearly $215,000. This unexpected discrepancy arises from what HyLife asserts to be a post-closing tax misinterpretation, which was initially considered part of pre-closing taxes.
HyLife’s legal representatives filed documentation in the U.S. Bankruptcy Court for the District of Delaware, outlining the tax-related misunderstanding. According to HyLife’s filing, the error resulted in Premium Iowa Pork mistakenly assuming a financial obligation for post-closing taxes that were intended as a responsibility of HyLife. The former owner contends that this miscalculation should be addressed by Premium Iowa Pork, beyond the $14 million that was already paid for the acquisition of the pork operation through an auction held in June.
HyLife characterizes this incident as an unintended financial gain, or “windfall,” for Premium Iowa Pork, as reported by the Minneapolis Star-Tribune. However, the bankruptcy court documentation refrains from attributing fault to either party for the bookkeeping oversight.
In response, an attorney representing Premium Iowa Pork has emphasized that, according to the terms of the sale agreement, no further financial obligations are owed to HyLife. The attorney clarified that the property taxes that were due and payable at the time of the closing were indeed provided by the seller, thus fulfilling the agreement’s terms.
As the dispute unfolds, the future plans for the processing facility remain under review. Iowa Premium Pork, the owner of Premium Iowa Pork, shared that the plant is anticipated to join the company’s roster of high-quality natural pork product production facilities. This aligns with their existing operations in the region, as they continue to pursue their commitment to delivering premium pork products.