SIT­U­A­TION

• Chi­ron was the Finan­cial Advi­sor and Invest­ment Banker to the Company
• The Com­pa­ny and its fam­i­ly man­agers had built a farm­ing oper­a­tion of over 125,000 acres
• It was ver­ti­cal­ly inte­grat­ed with more than $200 MM of debt, sub­stan­tial amounts of farm­ing infra­struc­ture, and hun­dreds of pieces of equipment
• The Com­pa­ny had become insol­vent, and the fam­i­ly declined the rec­om­men­da­tion of its pro­fes­sion­als to file for Chap­ter 11 pro­tec­tion. There were numer­ous law­suits from var­i­ous lenders, and some law­suits were reduced to judg­ments against both the farm­ing enti­ties and fam­i­ly members

OUT­COME

• Chi­ron under­took a cap­i­tal mar­kets effort to refi­nance the Com­pa­ny. A glob­al out-of-court financ­ing and set­tle­ment was not avail­able as prospec­tive investors insist­ed on a Chap­ter 11
• The Com­pa­ny worked with Chi­ron and legal coun­sel to facil­i­tate a new orga­ni­za­tion­al struc­ture where cer­tain fam­i­ly mem­bers con­tin­ued the farm­ing oper­a­tion under a new own­er­ship structure
• Chi­ron suc­cess­ful­ly restruc­tured a $16 MM note, financ­ing 150 pieces of equip­ment, with one of the Company’s lega­cy equip­ment lenders. The restruc­tur­ing pro­vid­ed for the new oper­a­tion to lease the equip­ment, pro­vid­ed for the lender to amor­tize the note, and the allowed farm­ing oper­a­tion con­tin­ue its oper­a­tions using the equipment