Leading Hoses to Water......

[oneoff]

In an effort to not offend those who see my posts as not "commodity related"; I have just posted a very important piece of information that affects at least 120 producers and quite probably several other businesses and their customers and so on around and around.

For those who care to look more than half way down the page of topics in commodity marketing; and pay particular attention on the right hand side of the page where the date and time of the last post for each of the topics is located.

Since this is "breaking news" and was just posted this evening of Nov 30; it is relatively easy to locate what I am referring to.

It is worth looking for and is indeed food for thought for all of us.

[oneoff]

That should be "Leading Horses to Water.....

[ColevilleH2S]

This should have been titled "wild goose chase" It took me awhile to find it so I'll spare everyone else, and just re-post the damn thing.
---------------------------------------
Posted by oneoff;

The open letter copied below was addreesed to the creditors of Newco Grain early this evening. It is this type of disclosure that should be given in circumstances where other people's money becomes at risk; because it is where other peoples business becomes the business of hundreds of others; directly and indirectly affected. Hopefully all the parties can both learn and benefit from open dialogue and some understanding. And I again repeat that smugness on the part of anyone in this day and age is also categorized by other more descritive terms that convey the intent more poignantly.


" To the creditors of Newco Grain Ltd. (NGL):

We are writing to you to give you a brief update as to the affairs here at NGL. In the past 6 months we have been in touch with you to the best of our ability by phone, but we cannot maintain that anymore. From now on we will communicate on a regular basis by email.

We at NGL are committed to repayment of our debts and appreciate your patience as we work through the problems that we are facing.

The situations we are in at the moment are as follows:

- One of NGL’s accounts receivable in the amount of approx $672k is 60% collectable by February 28, 2013, according to creditors proposal and the remaining balance scheduled for collection in equal monthly payments for the seven months leading up to September 30, 2013. This is in debt review so it is based on the fact that the client gets refinanced.

- Also for long term account receivable NGL is working to collect approx $367k over 8 years.

- The land that NGL owns has equity in the amount of approx $200k. At the moment we have an expression of interest on it. If this proposal goes forward this money will be distributed pro-rata to creditors.

- We are currently communicating with and in the process of retaining a third party to assist in formulating a formal proposal to deal with all outstanding amounts.

Again, thank-you for your patience and we will keep you updated.


Neil Slingerland

1-800-661-2312
neil@newcograin.com

[hobbyfrmr]

One off,

Good luck with that.

[sumdumguy]

Accounts Receivable - the further out you go, the
less of a chance you will get paid.

[oneoff]

I know I know

But I only present this information as food for thought and lessons for everyone.
We are all in this together and the agriculture industry has got this issue as one of its major problems which has and will ruin and seriously harm all those who get caught up in its web; both past present and especially future.

[redbaron]

We have a similar situation in MB with Puratone. Here
again unsecured creditors like farmers delivering grain
to the feed mill are left out. Those hauling till days
before the filing of the bankruptcy are left in the cold.
After are secured by the receiver. One individual
farmer is out $300,000. Best yields in wheat here, best
prices and look what can happen.

[oneoff]

Farmers Get off your asses and get some momentum going. Not one of us is smart enough to avoid these losses. 100% payment is the objective.

I guarantee these situations will personally visit you sometime in your future, or maybe many times in your careers........or as most know its already happened to some extent.

[wmoebis]

I refer you to sec. 4.0, 4.1, 4.2 on page 41.


http://www.agr.gc.ca/info/consult/cgc-ccg/pdf/compas_cgc-ccg_e.pdf

the Assisstant Commissioners were a very valuable tool and should have never been done away with, but expanded on. Obviously the CGC employees can't fill thier shoes.

[sumdumguy]

Oneoff, we have been around for awhile. Been
schnookered by freight forwarders and logistic
expert. Never to the extent of $300,000, but I
agree, a workibg solution is in receivable
insurance. I am a little hesitant of the state of the
insurer. The deals are big and the risky buyers
are many. My question is how will these
companies be able to insure the buyers? They
will have to be huge and have extensive credit
data, to be able to respond quickly enough to
close a contract.