LUBBOCK, TX -- A group of West Texas farmers have signed an involuntary bankruptcy petition against a company based in Terry County.
In total 24 farmers signed that petition, claiming they were never paid for the 2013 guar crop they sold to West Texas Guar.
According to Lubbock attorney Fernando Bustos, who represents four of the 24 farmers, in total, all the farmers are owed about $4 million. Bustos said there could be as many as 400 farmers affected by this, stretching not only across the South Plains, but also to south Texas, Kansas and Oklahoma.
On Monday, in federal court, West Texas Guar agreed to stop paying some of their higher ups, like their CEO, lawyers, consultants, and more for the next two weeks, and only pay those workers on the ground and things like their LP&L bills in order to keep the plant running.
This was a decision for a two week period, because in two weeks, the two sides will meet again to have another hearing, where a trustee will possibly be named for the bankruptcy proceedings.
"It's as if we would have gotten a good, smart trustee in there, who will have made smart business decisions, to cut out a bunch of unnecessary expenses, and run the business smartly, for the next two weeks, while we try to see if we can't work out a settlement, perhaps," Bustos said about the decision Monday.
Bustos also said over the next two weeks, they will continue to work to a settlement.
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