In the latest development tied to the Compeer Financial lawsuit, a court-appointed receiver has proposed selling the assets of the bankrupt Sunterra hog operations in South Dakota to The Pork Group, a subsidiary of Tyson Foods.
The proposed sale, revealed through court documents in early May, outlines the transfer of all Sunterra facilities—including finishers, equipment, and support structures—to The Pork Group. The offer, reportedly over $15 million, follows Compeer Financial’s earlier lawsuit seeking $36 million in damages from a group of hog operators who allegedly committed fraud through forged financial statements and inflated sow numbers.
The receivership and liquidation come after a federal judge froze assets linked to the alleged fraud scheme, citing serious financial misrepresentation and breached loan covenants. The operations were originally run under a network that included links to the Sunterra Group, a Canadian-based pork company with U.S. production ties.
A Strategic Move by Tyson
The Pork Group’s proposed acquisition has been positioned as a strategic move to stabilize operations, secure supply, and bring continuity to local employment and animal care. The purchase would allow Tyson to expand its presence in the region and mitigate potential gaps in the pork supply chain.
According to the court-appointed receiver, the deal presents “the best available option” for ensuring biosecurity, continuity of care for livestock, and financial recovery for creditors. The transaction is expected to include all real estate, equipment, and livestock tied to the Sunterra-linked facilities.
What’s Next?
The sale still requires court approval, with hearings scheduled in the coming weeks. If approved, Tyson’s The Pork Group will take ownership and responsibility for transitioning the operations. Tyson’s broader supply network will retain staff.
This case continues to serve as a stark reminder of the risks tied to financial oversight in modern hog production, especially as scale and vertical integration grow. Swine Web will continue to monitor updates from the proceedings and provide coverage as the story develops.
📌 Related Read: Compeer Financial Seeks $36 Million in Damages – Alleges Fraud Scheme
