Rural Landowner Exits Bankruptcy with $8.5MM Refinance
Midwest client recovers from delinquent payments with AgAmerica’s flexible financial structure.
There is no one-size-fits-all approach to agricultural land financing. Every operation contains its own set of strengths and challenges. Even when an operation shows years of success, one unpredictable event runs the risk of derailing future progress. That’s why finding a lender with the capacity to adapt to unforeseen obstacles and stick by you through the ups and downs is a rare and priceless partner to have.
The Challenge
A ranch and recreational operation in the Midwest was in a difficult but manageable financial position. The owner had filed for bankruptcy protection earlier this year after a high-net-worth investor deferred their investment due to the COVID-19 pandemic. On the contrary of a flailing business, the client was thriving but had fallen into this situation from an ongoing dispute between previous partners attempting to liquidate their investments. The deferred investment was supposed to aid in paying off outstanding interests on the former partners’ investments. No longer able to afford these aggressive payments, the landowner turned to AgAmerica to see if we could provide a unique solution to their unique financial predicament.
The Solution
AgAmerica worked closely with the borrower to understand the current ownership structure and to provide a more streamlined option. Along with a two-note loan package to refinance the borrower’s existing debt load into more manageable, interest-only payments, AgAmerica also endorsed and proposed a simplified organizational structure once the operation was no longer in bankruptcy. With AgAmerica in their corner, the borrower was able to right-size their financial position and complete an orderly exit from bankruptcy and build a more resilient operation moving forward.