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n. Illinois | No farming operation can support brand new costs on all of its assets which is what this operation did since it took off in 2013.
They grew too fast. They had a great song and dance show and some creditor ditched due diligence due to the size of the deal. They have no liquidity and all of last years operating debts is still on the books and all of last years crops have been sold off.
Seen this more than once and it ends up the same every time. Your going to find out that they lost massive amounts of money playing the markets, The owners sucked millions out for their own personal benefit and will be untouchable and they provided zero personal liability to the deal. They had to have audited financial statements and we will learn that the audited financial statements aren't worth the paper they were on. There will be tons of unsecured creditors that will climb out of the wall now that the cash is stopping. The landlords will be forced to take less on their leases.
The appraisals will be worthless, The values assume no one is attempting to sell off all of it at once and within a short time period. They will flood their local markets and there is only one direction the price will go and its not up. If they attempt sell it as a whole who or what can do a deal that big? The Moorman's could pull it off but they aren't going to pay market price given current returns. | |
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Monette farms liability
