Falkirk won’t disclose earnings from liquidationThe liquidation of the two Falkirk (N.D.) Elevators drew a good crowd of bidders June 30, though it’s too soon to say how much cash from the liquidation will be available to pay off the elevators’ debts.
By: Lauren Donovan, The Bismarck (N.D.) Tribune
The liquidation of the two Falkirk (N.D.) Elevators drew a good crowd of bidders June 30, though it’s too soon to say how much cash from the liquidation will be available to pay off the elevators’ debts.
Trucks, tractors, furnishings and other equipment from the Falkirk and Hazen, N.D., elevators was sold off at auction to help pay down loans that are worth more than cash on hand and stored commodities.
Upside-down finances of about $3 million were uncovered this spring, when CHS Inc. conducted an audit for a planned merger with the Falkirk elevators and a CHS elevator at Garrison.
Last week, the elevator patrons voted 88-1 to liquidate rather than take other steps, including reorganizing under bankruptcy.
Elevator manager Art Perdue said some money from the auction will go to pay off vehicles and tractors, before the rest can be applied to looming bank loans of nearly $6 million. Beyond that, Perdue wouldn’t discuss auction earnings.
The physical properties were not sold at the auction.
Perdue said there are a couple of entities interested in purchasing the Falkirk bean plant facilities and the board has offers, but nothing in writing, for the Hazen elevator. One is from a fracture treatment sand operation for oil well development.
Enerbase, a Minot, N.D., company, is operating agronomy services at both locations, but neither elevator is open for typical grain trade operations.