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Chapter 11 in Micihgan
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JoeDirtToo
Posted 9/26/2017 07:27 (#6271264)
Subject: Chapter 11 in Micihgan


Midwest		What does this mean to those involved?

https://mibiz.com/item/25129-federal-court-oks-boersen-farms-to-seek...

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emtbd1979
Posted 9/26/2017 07:42 (#6271303 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan



west central illinois		It means they just got put on the back burner so boreson can restructure to try and pay his debts. If he can't and the company becomes insolvent after restructure CHS will own the new structured company more than likely.

The reason I think they did this is there were no assets to pay the debt under chapter 7 liquidation. But IMO there is no way he restructured and pays back a dime. I do not know about land contracts. I believe underlaw they can not me terminated but restructured also.

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hillfarmer
Posted 9/26/2017 08:10 (#6271380 - in reply to #6271303)
Subject: RE: Chapter 11 in Micihgan



in the 80's, the trick ,was to buy $800 land, for $2000 on land contract
then file, and get it reduced to the "normal rate "

the seller gets educated on land contracts
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Dmpaul89
Posted 9/26/2017 08:18 (#6271401 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan


Sw. Ill		I thought they couldnt do bankruptcy because of the fraud
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don@nebr
Posted 9/26/2017 08:31 (#6271431 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan


I asked because I don't know.

Under chapter 11 are landlords required to rent to them? Even tho they haven't been paid? Or can the leases be terminated for non payment?

Or are 2017 leases automatically extended to 2018 without approval of the landlord?
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paul the original
Posted 9/26/2017 08:48 (#6271464 - in reply to #6271431)
Subject: RE: Chapter 11 in Micihgan


southern MN		Those are good questions.

I suppose state law and wording of the rental contracts comes into play.

I would expect an operation that comes along with top dollar also comes along with a contract written in their favor. Those land owners that look for top dollar only likely saw the dollar signs, and not the contract as carefully?

About 1/4 of the contracts would have originally carried through from the Stamp operation dissolution? Wonder how those land owners faired the first time through, and how they will fair this time through.

I wonder if any land management companies tended to be associated with any of the three Boerson
Operations? Would there be a cozy relationship to gather more land, and how do those management firms fair going through these transitions?

Paul

Edited by paul the original 9/26/2017 08:50
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pfl
Posted 9/26/2017 09:12 (#6271519 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		as I read this ,we all be screwed, because they are being kept in operation by the court , the nightmare goes on and on
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Bruran
Posted 9/26/2017 09:22 (#6271534 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan


I AM NO EXPERT. It probably means Boersons will continue to draw a good salary for a couple of years while landlords get no rent or a reduced rent. In the end they will file chapter 7 and retire. I heard a few months ago a large operation in Texas strung a bankruptcy out for 19 years before the lender plugged all the loopholes and finally succeeded.
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don@nebr
Posted 9/26/2017 09:37 (#6271571 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan


This MAY shake out faster than we thought. Have they solved their immediate problem? That of 85,000 acres of crop in the field and no machinery to harvest it. Don't know if they still have qualified help to harvest or trucks etc.?

How long till harvest in their neck of the woods??? Cant screw around too long past 'go' time with that amount to go!!!
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BOGTROTTER
Posted 9/26/2017 11:25 (#6271771 - in reply to #6271571)
Subject: RE: Chapter 11 in Micihgan


Kingston,Mi		A quick search for USED combines on Tractorhouse with the following parameters: 1990 to 2000, $25000 to $50000, John Deere, CIH, Gleaner and Massey in Michigan, Ohio, Indiana and Illinois found 216 machines from as large as a 9750 to as small as R42. I would think that all the equipment dealers would want to be as little wet from taking a bath with this operation so renting on a per hour basis with the payments coming weekly from the receiver.

One of the AGCO dealers in that area rented used equipment they owned that was in inventory when they were John Deere dealers, if wasn't being prepped for resale, it was available to rent. That way it was earning its keep, I rented a nice 7720 to harvest 20 acres of soys once and understand that an acquaintance once had 4 or 5 JD 95's running together in one field in the late 60's. The family owned 1 machine possibly 2, the rest were from the dealership. If you wanted to see them run, they took you to the field, if you bought, they unloaded and handed it over to the new owner.
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Ben D, N CA
Posted 9/26/2017 11:12 (#6271741 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan



Whiskey, Tango, Foxtrot		How are these land leases usually structured? Mine all state that the remaining rent (often there is a non refundable deposit or partial payment the year prior to the crop year the contract is for) needs to be paid, in full before the tenant can take possession of the land. March 1.

In March we are still froze up usually, so if someone backs out at that point I have a deposit or partial payment, and still have time to probably find another guy to rent the ground for the year. Even if I have to lower the rent a little, still come out ahead. My lease contracts all state that if the payment is not received in full, lease is null and void and I have the right to lease to someone else or farm it myself. Seems ridiculous to not try and protect yourself like that.
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pfl
Posted 9/26/2017 11:15 (#6271747 - in reply to #6271741)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		the courts will not see it that way and you will be forced to let the guy who was farming it farm it ,and there is zip that you can do about it
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Ben D, N CA
Posted 9/26/2017 11:29 (#6271781 - in reply to #6271747)
Subject: RE: Chapter 11 in Micihgan



Whiskey, Tango, Foxtrot		I would imagine, as usual, it depends on how good your lawyer is.

My leases are all for rotation crops anyway, I'm just renting out for a year in between hay crops. I'd imagine these are more long term leases, or cropshare.
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paul the original
Posted 9/26/2017 13:15 (#6271991 - in reply to #6271781)
Subject: RE: Chapter 11 in Micihgan


southern MN		An issue is that courts are used to big business and settling things for pennies on the dollar.

This will be an opportunity for the next big outfit to come in and get a bargain price on 80,000 acres and farm it for 2-3 years, until the cycle repeats itself.

There won't be any effort to break this back down to manageable sizes, only to get it dealt with and move on. Find one management receiver and get things done and move on. there will be no thinking of small scale, sustainable.

So, who gets to mismanage it all again for the next 3 years? Who will be the stalking horse this time around?

Paul
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Clay SEIA
Posted 9/26/2017 13:30 (#6272009 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan



So Ceres Farms is selling the idea of 4-8% cash returns for farmland, whitewashing the idea that long-term commodity price slumps happen in agriculture, and implying that 7% asset appreciation should happen all while charging rents which are obviously unsustainable enough to bankrupt multiple operators.  Kinda makes me want to send them and their investors a sympathy card.******************

 





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Trapshooter1
Posted 9/26/2017 15:59 (#6272233 - in reply to #6272009)
Subject: RE: Chapter 11 in Micihgan


Grandpa calls it God's country, NEIA		They better get a hold of Reicks View Farms. He d probably take the whole damn thing. Already in IA, MN, Wisconsin, and just recently expanded into Michigan.

Edited by Trapshooter1 9/26/2017 16:01
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redrotor1
Posted 9/26/2017 22:35 (#6273242 - in reply to #6272233)
Subject: RE: Chapter 11 in Micihgan


Southern Michigan		This could be interesting with the new Clemens Hog plant in Coldwater if Reicks View took over this whole mess. As far as Ceres Group, isn't Boersen a shareholder?
I think it's going to be kind of hard to dig out of that hole. Center pivots around here are pad locked or the control panels are completely removed. Not to mention the amount of iron that has left here the last few weeks.

Edit: missing word

Edited by redrotor1 9/26/2017 22:36
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gofurit
Posted 9/27/2017 05:32 (#6273414 - in reply to #6273242)
Subject: RE: Chapter 11 in Micihgan


custar ohio		What has happened to the employees? Are they still working or looking for jobs?
Going to hurt a bunch of innocent people.
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redrotor1
Posted 9/27/2017 10:30 (#6273917 - in reply to #6273414)
Subject: RE: Chapter 11 in Micihgan


Southern Michigan		Around here, some have moved on to other jobs, some are sticking it out to the end it appears.
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Longswamp
Posted 9/27/2017 12:43 (#6274128 - in reply to #6273242)
Subject: RE: Chapter 11 in Micihgan


Indiana		What's the connection with Clemens Hog plant and Reicks? Why would it be interesting? Thanks.
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mifarmboy
Posted 9/27/2017 13:37 (#6274208 - in reply to #6274128)
Subject: RE: Chapter 11 in Micihgan


Grand Rapids MI		http://www.grbj.com/articles/88974-court-approves-farms-bankruptcy-...
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pfl
Posted 9/27/2017 14:25 (#6274283 - in reply to #6274208)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		it will be interesting to see who harvests this crop , from my neighborhood there are a lot of ticked off landowners who were lied to last spring, a lot of court actions being filed, so my Attorney said
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mifarmboy
Posted 9/27/2017 15:18 (#6274359 - in reply to #6274283)
Subject: RE: Chapter 11 in Micihgan


Grand Rapids MI		With this BK filing, they should be able to pick up all their equipment & get busy with harvest. This will be a mess that will take years to untangle....with Boersen's not coming out on the short end I'm certain.
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pfl
Posted 9/27/2017 17:04 (#6274461 - in reply to #6274359)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		I hear you , bet Dennis has a plan..............but by a time factor with the courts he might be a bit late??
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cougar3
Posted 9/27/2017 15:54 (#6274395 - in reply to #6273242)
Subject: RE: Chapter 11 in Micihgan


Lower Michigan
redrotor1 - 9/26/2017 22:35

This could be interesting with the new Clemens Hog plant in Coldwater if Reicks View took over this whole mess. As far as Ceres Group, isn't Boersen a shareholder?
I think it's going to be kind of hard to dig out of that hole. Center pivots around here are pad locked or the control panels are completely removed. Not to mention the amount of iron that has left here the last few weeks.

Edit: missing word


Clemems plant, a good soy meal supplier (ZFS) in Zeeland, and a ton of land available could have Reicks view licking his chops!
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pfl
Posted 9/27/2017 17:02 (#6274459 - in reply to #6274395)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		if he does , he might get an education quick! we are not the corn belt and corn belt soils, and it forgets to rain here
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pfl
Posted 9/27/2017 17:07 (#6274464 - in reply to #6274459)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		also had this thought , would Cooper Farms let him in?
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mifarmboy
Posted 9/28/2017 16:19 (#6276340 - in reply to #6274464)
Subject: RE: Chapter 11 in Micihgan


Grand Rapids MI		Who is Cooper Farms?
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pfl
Posted 9/29/2017 07:51 (#6277374 - in reply to #6276340)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		they are a large hog producer in Ohio, who has a stake in the Coldwater plant, seems if I remember right they have a lot of money invested, they also produce cooked pork products in their Van Wert Ohio plant
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pfl
Posted 9/29/2017 07:57 (#6277390 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan


Hillsdale Michigan		had these thoughts this Am, as long as there is money to be picked off the Boresen Goose, the attorneys will keep it alive, the trustee's cut this fall will be around a million to over see, it is now all about how much money is to be made by the Attorneys, and the creditor's will still be on the short end
I can see this going on and on for the next few years, like a bad dream you can not wake up from
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ben5398
Posted 9/29/2017 08:15 (#6277419 - in reply to #6271264)
Subject: RE: Chapter 11 in Micihgan



Central Illinois
JoeDirtToo - 9/26/2017 06:27

What does this mean to those involved?

https://mibiz.com/item/25129-federal-court-oks-boersen-farms-to-seek...



Will land owners ever go back to looking at smaller farms who are more solvent with enough of these stories.
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paul the original
Posted 9/29/2017 08:48 (#6277486 - in reply to #6277419)
Subject: RE: Chapter 11 in Micihgan


southern MN		I suspect the collection of acreage put together from these three enterprises is largely made up of absentee owners who have little connection to farming, the land is an investement.

As such they gravitate towards big business, big contracts, with no long term planning or emotion in it.

I wonder if there is a management company or two involved in feeding the cycle as well?

How many dollars can I pocket this year...... and so the cycle will continue.

I could be wrong.

Paul
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mifarmboy
Posted 10/5/2017 10:46 (#6288981 - in reply to #6277486)
Subject: RE: Chapter 11 in Micihgan


Grand Rapids MI		This report from WOOD-TV8 in Grand Rapids is saying Boersen's have not filed for bankruptcy and are settling with creditors and starting harvest. This Randy Humphreys, who is listed as their "Chief Restructuring Officer" was the manager for Mike Stamp at his grain elevator in Decatur and was involved in the transition with Boersen's back then. Very odd. http://woodtv.com/2017/10/04/questions-about-farms-crops-after-bank...
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