Lender Exits Grain Farmer Loan for Expected Value

Boersen Farms

Zeeland, Michigan

Challenge

One of the largest family farming operations in US. 100k acres farming corn and soybeans doing $70 million of sales. MorrisAnderson represented the largest secured creditor who had $250 million loan secured by 15k acres of land, $40 million of grain inventory and secured liens on other real estates.


  • Company dramatically expanded size of operations while farm commodities prices were high
  • With dramatically reduced community prices, company was bleeding cash, significantly over-leveraged and had collection litigation problems from several major creditors
  • Company had no cash reserves going into planting season

Solution

  • MorrisAnderson (MA) negotiated loan amendment whereby company provided quit claim deeds on 15k acres of previously 1st mortgaged land in exchange for ability to use collateralized proceeds of inventory sales to fund planting season costs and to give company a chance to effectuate a turnaround plan
  • MorrisAnderson consultant was on-site to daily monitor cash, inventory and other company actions to safe guard lending collateral
  • MA provided real time information daily to lender and its counsel

Results

  • Lender was free to sell its 15k acres of valuable farm land after harvest
  • Negotiated the sale of balance of lender’s collateral position for a cash amount acceptable to the lender
  • MA’s lender client was pleased to exit this loan for acceptable recovery

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both… Read More

Brian Schroeder

Brian Schroeder, CPA, is an Associate Director at MorrisAnderson. Brian brings an extensive background in the accounting, private equity, and wealth management industries and uses that background as a basis to structure practical solutions through comprehensive financial analysis. Prior to joining MorrisAnderson, Brian was a private wealth analyst for BMO Private Bank, an industry leader… Read More