Anderson Seed claims in SD total $2.6 millionThe South Dakota Public Utilities Commission has received $2.6 million in claims against Anderson Seed Co., a Mentor, Minn., company the South Dakota agency declared insolvent in its sunflower processing facility at Redfield, S.D.
By: Mikkel Pates, Agweek
FARGO, N.D. — The South Dakota Public Utilities Commission has received $2.6 million in claims against Anderson Seed Co., a Mentor, Minn., company the South Dakota agency declared insolvent in its sunflower processing facility at Redfield, S.D.
Chris Nelson, the South Dakota PUC’s chairman, says the agency’s staff will study the claims for legitimacy, comparing them against company records. The commission could then recommend that the local circuit court approve the proportional payout of a $100,000 bond against valid claims. The process could take months and payout will be pennies on the dollar.
The Mitchell (S.D.) Daily Republic is reporting that 28 people and businesses had filed claims against the company’s bond. The largest claim is for more than $672,000, by Dakota Mill and Grain Inc., Rapid City, S.D.
“It’s our understanding that the remaining mortgage will probably exceed the real estate value that’s still there,” Nelson says. If the facility is sold for more than the mortgage, the PUC will consider whether it can attach those dollars to add to the benefit of farmers.
The South Dakota case is in addition to $2.8 million in claims filed by 47 people and businesses against the company in North Dakota. The state of North Dakota has custody of a $280,000 bond. Officials with the Minnesota Department of Agriculture weren’t available immediately to say how many claims for what dollar figure are owed in that state.
Sister company St. Hilaire Seed was purchased by Legumex Walker, a grain company whose parent is in Winnipeg. Legumex Walker purchased some assets of Anderson Seed and has been approved for a license for former receiving stations at Selz, N.D., and at Durbin, N.D.