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Buxton ND | I'm NOT a fan of DP's to start with
This sounds like a fancy dancey Delayed Priced Contract with someone making a .05 per bushel,more it you roll forward. I would guess that 30% as an UNSECURED creditor.
Just another way to get your bushels to supply the demand without you selling them.
I would be careful to make sure that Marketing Company is licensed and bonded in your state................................
If that Ethanol plant you delivered too ends up being the next Vera-Sun this WHOLE thing would be a mess.....
At 19 years old I was in a bankruptcy with a big local private dry plant,the owner thought to be VERY VERY DEEP pockets and could weather anything. I was on a straight up learning curve what UN-secured and a secured creditor meant and what that fine print wording of the contracts really meant in a court of law........ 5-6 year later (yes the lawyers lined their pockets),I was payed 96% of what I was owed me. To this day I have a stack of paper work 7-8 inch high (lawyers lined their pockets) of all the legal BS to get my 96% | |
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Extended Pricing Contracts - Pros and Cons
