Rabo Agrifinance Owed $30Mil+ By Olsen Ag Raises Objections That May Threaten Bacchus Funding

Rabo Agrifinance (Rabo) — is owed more than twice the amount apparent in Olsen Agricultural’s incomplete initial filings — and has objected to the blanket use of cash collateral secured by its loans.

Judge Elizabeth L. Perris of the U.S. Bankruptcy Court for the District of Oregon, on Friday agreed with Rabo’s objections and has granted a limited and temporary use of funds to keep the company in business until a hearing can be held. Olsen Ag’s financials for 2010 indicates that it has assets of $29.8 million and liabilities of at least $37 million.

Bacchus Capital has publicly stated that it has offered Olsen a term sheet for Debtor-in-Possession funding, but Rabo’s objection raises the first significant barrier to closing that deal.

The hearing on Olsen Ag’s use of Rabo’s cash collateral is scheduled for 10 a.m., June 13 in the Bankruptcy Court in Eugene, OR.

Wine Executive News subscribers please click here to read the complete article.

Also In This Article:

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

• RABO LOAN TOTAL OBSCURED BY INCOMPLETE, MISLEADING FILING

• BACCHUS FUNDING ON LINE NEXT WEEK

Not a Wine Executive News subscriber yet?

Subscribe to Wine Executive News now, and get the rest of this original article along with everything else on the site every day, including original documents, spreadsheets,and source materials for just $13.99 per month or $159 per year. Click here for more details.