WASHINGTON, June 12, 2008 - On May 30, 2008, the U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration (GIPSA) entered into a decision without hearing by reason of consent with Creekstone Farms Premium Beef, LLC (Creekstone), Arkansas City, Kan. The decision resolves a complaint GIPSA filed against Creekstone on April 7, 2008, in which GIPSA alleged that Creekstone's current liabilities exceeded its current assets, and it was therefore operating in violation of the Packers and Stockyards (P&S) Act.

According to findings in the consent decision, Creekstone was engaged in the business of a packer from Dec. 31, 2006 through Aug. 26, 2007, and to the present, notwithstanding the fact that its current liabilities exceed its current assets. Creekstone must cease and desist from purchasing livestock while its financial condition does not meet the requirements of the P&S Act unless it pays the full purchase price for livestock at the time of the purchase in United States currency, by certified check, by wire transfer or in accordance with the payment provisions outlined in a separate understanding regarding the consent decision. The cease and desist order remains in effect until Creekstone shows GIPSA that its current assets exceed its current liabilities.

The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.

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GIPSA Release #12-08

Catherine M. Grasso 202-720-7201