May 16, 2012

Liquidation continues at Falkirk Elevator

By Michael Johnson, Editor

Falkirk Farmers Elevator continues to liquidate grain from its facilities in order to gain cash to pay towards its creditors. The Falkirk and Hazen locations have been working to get their accounts straight since the middle of April in order to find out where discrepancies in their finances have occurred. According to North Dakota Ag Commissioner Doug Goehring, the sale of the grain goes to pay off the co-op's banks before money or prepaid items are given to the patrons of the elevators. Goehring spoke with the board at Falkirk and officials at Cenex Harvest States (the co-op's lender) and the Public Service Commission to try to get an idea of where each entity is at. He says there is little new news to report on the ordeal. The groups are working hard to reconcile their books. The problem is that it could be  several months before all the numbers are resolved. “That's frustrating,” Goehring said. Cash is going to pay the creditors first and Goehring is in conversations with those creditors to see if, in good will, funds would be secured for the patrons. He does not feel that the banks have the cushion to do that.

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