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Hennepin, IL | That's true. In my scenario, depending on if or how much over the appraised value of the assets they paid for the debt, that could give them some room to work. For example, say the crop and facilities appraised at $80M, and that's what they paid CHS. Take roughly $50M off for the value of the crop and they have $30M in debt backed up by $30M in facilities. Then say they fully finance the operation for 2018. As long as boersen can generate enough (with them pulling the strings of course) to cover the operating note, interest, and even pay some interest on the $30M, they're golden because I'm willing to bet all of boersens grain will go through them, and possibly inputs? As soon as he can't service the debt (may only take one year), they just purchased $30M in facilities at face value, merchandised 80k acres of grain twice (2017 and 2018 crop), plus maybe made some interest somewhere along the line. Again this is purely speculating on my part and some numbers could be way off, but gives you the jist of what I'm thinking. | |
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Looks like CHS sold the debt
