Case Studies

Grain Farm Loan Amendment Negotiations

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Grain Farm Loan Amendment Negotiations

The Situation

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

  • The company dramatically expanded the size of its operations while farm commodity prices were high.
  • With dramatically reduced community prices, the company was bleeding cash, significantly overleveraged, and faced collection litigation problems from several major creditors.
  • The company had no cash reserves going into the planting season.

How We Advised

Our team negotiated a loan amendment whereby the company provided quitclaim deeds on 15k acres of previously first-mortgaged land in exchange for the ability to use the collateralized proceeds of inventory sales to fund planting season costs and to give the company a chance to effectuate a turnaround plan.

  • Our consultant was on-site to daily monitor cash, inventory, and other company actions to safeguard lending collateral.
  • Provided real-time information daily to the lender and its counsel.
  • Lender was free to sell its 15k acres of valuable farmland after harvest.
  • Negotiated the sale of the balance of the lender’s collateral position for a cash amount acceptable to the lender.
  • Our lender client was pleased to exit this loan for acceptable recovery.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

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