In a recent ruling by a Delaware bankruptcy court, Iowa Premium Pork has been instructed to pay an extra $188,000 to HyLife Foods, covering property taxes related to the sale of the Windom, Minnesota facility. This decision comes after HyLife, the previous owner of the closed facility, sold it to Iowa Premium Pork for $14 million back in June. HyLife claimed that the buyer was responsible for $215,000 in property taxes due to a bookkeeping error.
According to court documents, lawyers representing HyLife argued that both companies had mistakenly considered an amount owed for post-closing taxes as pre-closing taxes. As a result of this error, Judge Thomas M. Horan ruled this week that Iowa Premium Pork would need to pay $118,057.50 to resolve the tax claim.
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