Oregon Grower’s Survival Hinges on Quick Approval of High-Interest Bridge Financing

The immediate survival of bankrupt Willamette Valley grower Olsen Agricultural Enterprises (“Olsen Ag”) depends on quick court approval of a plan to use secured receivables to finance a multimillion-dollar Debtor-In-Possession financing plan. The company filed for Chapter 11 protection June 1 in U.S. Bankruptcy Court for the District of Oregon.

Rabobank, Olsen Ag’s largest single creditor, and three other secured creditors may oppose that request.

According to a declaration filed with the court by James E. Olsen, the company’s books and records reflect assets of $29.8 million and total liabilities of $37.2 million.

Olsen Ag farms 7,762 acres of owned or leased land in Oregon’s Benton, Linn and Polk Counties. Olsen Family Vineyards grows a variety of wine grapes on 494 of those acres. The other acres are used for production of grass seed (their primary crop), hazelnuts, blueberries and other crops.

James E. Olsen’s declaration said that grass seed is closely linked to the housing market and when that collapsed, so did their seed business and that has prompted the bankruptcy.

A hearing is scheduled for 10 a.m., Friday, June 3 at the bankruptcy court in Portland.

The bankruptcy was first reported June 2 by WineBusiness.Com.

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Also In This Article:

The full text of the following sections is available to Wine Executive News).

• RABOBANK OWED MOST AMONG 200+ CREDITORS

• WINERY & VINEYARD BORROWING BEGAN DOWNFALL

• DETAILS OF BACCHUS DEBTOR-IN-POSSESSION FINANCING

• BACCHUS/OLSEN AG FINANCING HANGS ON FRIDAY HEARING

• LIST OF 20 LARGEST UNSECURED CREDITORS

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