About 100 Producer’s Grain patrons learned Tuesday evening at the Land of Lake’s Fairgrounds that the nearly 100-year-old company has $900,000 more debt than it has assets.
The board of directors, with Board President Jerry Brackenridge as the spokesman, told the patrons that the board just learned of the huge deficit when the board of directors received the audit in late November. Auditor Rick Westbrooke said the company has $7.6 million in liabilities and only $6.7 million in total assets.
Officers from MFA Inc. were at the meeting and offered to take over Producer’s Grain and assume all the debt. The advantage of that offer is Producer’s Grain would continue to operate with no lapse in service. The other option is for Producer’s Grain to declare bankruptcy. Patrons will make that decision at a Producer’s Grain annual meeting Jan. 29. It will take a two-thirds majority to approve the MFA offer. A no vote of 34% will mean that the company must declare bankruptcy.
MFA has said it will keep the employees and the operations in El Dorado Springs, Walker, Nevada and Bronaugh going. MFA officials said that any pre-pays patrons made to Producer’ Grain were immediately forwarded to MFA which will honor those pre-pays regardless of whether patrons vote to let MFA take over Producer’s Grain.
MFA presented a detailed list of benefits and efficiencies of being part of MFA Inc. (The Sun will present that list next week as it is now 9:26 p.m. on Tuesday, well past deadline.)
A second informational meeting is scheduled for 7 p.m. Thursday at the Vernon County Fairgrounds.