how does one handle a sale to Big Sky

[Hopperbin]

Seems they are leading the pack in price at the moment and for good reason the pigs need to be fed. Is there a way one can secure the payment for grain delivered. Talked to another trucker in a lineup and he said a certain bank will guarantee a payment. I have my doubts.

[groundspeed]

Id ask for payment on the driveway, people who delivered in aug got stiffed.

[newguy]

Talked to worker at feed mill and he said lots of grain coming in right now. Must be some kind of garanteed payment. Can not help think there still must be a risk involed.

[bobofthenorth]

I assume they're operating under a receiver manager. In that case it's Deloitte or Price Waterhouse or whoever the Receiver works for who is guaranteeing payment. You're way safer selling to them once their situation is official than you were when they were still pretending. Just ask the question.

[wmoebis]

You can bet Deloitte or price are getting paid in full. Infact they are likely getting the money that is owed to the farmers that delivered in Aug. Oh, and the Managers and accountants for Big Sky will be getting paid also, maybe even bonuses.

[sumdumguy]

Top feeders often pay the ultimate price.

[ASRG]

cash on delivery. No checks, cold hard cash.

[ASRG]

There is basically no risk when a company goes into banruptcy protection. All outstanding debts at the time of filing get put on hold. Big sky is working with the cash received from hog sales. Utilties, worker and building costs and the biggest, feed costs can be cash flowed quite easily.

Those that delivered prior to the date are most likely put into a pool with an unknown amount paid out in the future.

[newguy]

The ones that delivered in august were caught up before things hit the fan. Never heard of anyone worried around here.

[groundspeed]

Delivered barley mid aug, cheque bounced. Reciever says im sol.

[Hopperbin]

Sask99 they are still losing 60 some odd dollars per hog, so where is the money supposed to come from? Just a few short years ago when it happened before anyone owed under 4000 dollars got 100 percent, anyone owed over that amount got 10 percent on the dollar. I don't get it someone must have deep pockets to keep this thing going is it us taxpayers?

[oneoff]

The new paradyme is that you just walk away from debts and it drags on and on outside the creditors control.

Take Newco pre May 12/2012, no less than "FULLY" LICENCED, AND BONDED WITH AN ARM OF THE CANADIAN GOVERNMENT (the Canadian Grain Commission). And months later the actual (unknown to producers) bonding company and their underwriters and co insurers and whatever else; are balking at paying less than 100% of what those producers are owed.

To clarify that; they are not even willing to pay any fraction of that amount, many months later.

Is that protection of any sort? Could farmers even stick together in demanding payment on delivery; let alone upfront with enough time for cheques to clear and/or direct deposits to be completed.

The answer is a resounding "No"; and so we will continue to get stiffed on payments due; portrayed as an industry that can't control its affairs and get the dredgings that industries serve us for rural internet service for example.

[Hopperbin]

I am thinking the best way to handle is not to make a sale if don't get paid and cleared before delivery. From word of mouth heard they were a buck a bushel above other local buyers. We seem to be low here at 7 bucks. Big sky buyer did not get back to me to confirm a price. Maybe they know I post on here. Could be time for a name change.

[grainboy]

i dont care what the price i dont know why you would want to sell to BS, they have screwed over so many guys in the past 3 years. to me the extra money they are paying would never be worth it & i highly doubt it will be $1 over market.

let them sell all the pigs off & be done with it.

[oneoff]

But I doubt that 10% would agree with you hopper.

However; in no way does that suspicion undermine a very sound decision on your part. Anyone is a pretty stupid banker if they don't have a strong handle on the purchasers financial status.

And don't tell me that one broker, or farmer saw the Newco collapse coming. Just as all the red ink for the hog industry means that feed mills, pig producers and everyone else associated with such an industry is flirting with money losing ventures that parties are going to walk away from.
And it seems that limited companies, will be used for the very purpose they were created.


That is to limit the liability to that one's participation in that non-human entity.