AVP_Matt - 10/12/2017 08:56

Just speculating, so I could be way off. ZFS buys the debt for the value of or a few % above the rest of boersens assets. Going out on a limb and guessing all the facilities are still his, plus 80k acres of crops in the field. CHS is able to immediately square up their books, write off a known amount, and basically wash their hands of the deal while avoiding any more bad publicity.

As far as what the future holds, keep in mind a private lender can have much more leverage over an operation than a bank legally can. My guess is they essentially run the operation just with boersen name on it. All financing will come from ZFS and willing to bet all grain will be sold to them. They'll keep boersen solvent for a year or three to collect as much interest and hopefully principle on that note as possible, then in a few years when he defaults, they take ownership of the facilities and assume the rental contracts that are left. In the meantime they just procured 80k acres worth of grain, and potentially that much again next year.