SALEM, Ore. — A judge has ordered an Oregon dairy not to interfere with the sale of its cattle to satisfy the demands of a major creditor.

The Capital Press reports that Morrow County Judge Jon Lieuallen granted a preliminary injunction requiring the owner of Lost Valley Farm to cooperate with an auction set for next week.

The order, however, doesn’t prohibit the Boardman-based dairy from seeking bankruptcy protection.

The creditor, Rabobank, filed a lawsuit seeking to foreclose on the dairy’s assets, which serve as collateral for $60 million in defaulted loans.

Lost Valley Farm began operating last year, over the objection of environmentalists who feared the big dairy would be a polluter. Those worries came to fruition, with the state earlier this year accusing the dairy of endangering drinking water by mismanaging manure and wastewater.

The sides reached a settlement in March, allowing the dairy to continue operations in a limited capacity.

Information from: Capital Press,

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