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Case Studies

Row Crop Grower

Agriculture

Adobe Stock 200585311


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

The Challenge

It was vertically integrated with more than $200 MM of debt, substantial amounts of farming infrastructure, and hundreds of pieces of equipment.

The Chiron Solution

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 Result

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.

Is your com­pa­ny per­form­ing like it should?

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