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| Several things are not clear/resolved yet as it relates to the LT Capital(ZeelandFarm Service) acquisition of the Boersen debt.
First is the real estate situation. In May the Boersen entities transferred on a deed in lieu of foreclosure approximately 14,000 acres to CHS Capital LLC. This was not all of the Boersen real estate but was the acreage that CHS held the sole mortgage on. The acreage transferred included the Ransom Rd property in Zeeland that is the farm headquarters as was the grain storage facility on Callahan Rd west of Parma Mi. I have yet to see any deeds transferring any of these acres from CHS to LT Capital. If CHS keeps these acres and received something for the outstanding debt they made out fairly well. The remaining acres that Boersen owned was securing parts of the CHS debt but from what I have seen most of this acreage has other secured parties on it as well as the CHS mortgages. I have seen the assignments go the mortgages from CHS to LT Capital but what good is it to have a mortgage on a farm with two other secured parties with a higher priority interest, unless the new company buys out all the debt. There were at least two sheriff sales scheduled by First Farmers Bank and Trust, who held the first mortgage on some of the real estate Boersen still owned after the CHS deal in May.
Next we still are waiting on the federal court to approve the motion by CHS Capital to allow LT Capital to assume their position and then for LT Capital to close out the court case. I have read every court filing and find it interesting that the motion by CHS was filed on Monday afternoon and the Court still hasn't approved it. When the receiver filed his request for permission to file bankruptcy the court approved that within a couple of hours and that was on a Friday evening. I keep hoping the judge will see the futility I keeping the Boersen entities functioning and dirrect the receiver to file the chapter 11.
What is happening with all the other lawsuits against Boersen, the latest in federal court was the Monsanto one filed in Missouri. There are suits in multiple counties in Michigan against Boersen. Is LT Capital providing the funds to clear up all outstanding debt? In addition to the $145 million owed to CHS there were filings in that case that showed Boersen owing money to the following creditors.
CNH Industrial Capital $24 million
First Farmers Bank and Trust $22 million
Helena Chemical Company $11 million
Tetra Financial $16.5 million(suit in Utah supposedly reached a settlement after Boersenfound in contempt of court and fined over $2 million)
These are just some of the other outstanding debts. When will the madness end. | |
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"ZFS and Boerson's"
