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Casey Iowa | I don't doubt Boerson has most likely outspent their income.....but if they owed $145M to CHS and the crop in the field on 80,000 acres was the only thing CHS had for collateral why would ZFS have any interest in buying the debt????......even if they buy the debt at a discount???.....the discount would have to be huge!!!....like buying the debt for 25% of the total 145M......maybe Boersen's raises a whole lot of sugar beets or potatoes or some other specialty crop that is worth way more per acre than soya and corn though.........otherwise I don't see why this ZFS would have any interest in buying the debt......looks to me like they have made several purchases of processing facilities at hefty discounts from the cost of building the facilities which makes "smart" business sense if one has the ability to run said facilities. Imagine you get offered 10,000 acres to rent for $80 dollars an acre in an area that produces 180 bushel corn consistently......Everyone else is paying $270 on average in the area similar ground......that is sort like getting to buy a facility for 30 cents on the dollar.........I realize there is a huge difference,,,,but I believe there are similarities....and it may help to understand how this ZFS "may" doing "ok" business/financially. | |
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Looks like CHS sold the debt
