As reported here (and so far, nowhere else) yesterday, the environmental atrocity known as Veblen East Dairy and its remaining 5000 head of cattle were sold at bankruptcy auction last week for $23,100,000. The Veblen West Dairy, also owned and driven into insolvency by Richard Millner, may be heading the same direction.
The Minnesota Secretary of State's office has posted business organization information for a new company based in Mankato, MN: Veblen West Acquisition, LLC. Nice when a company's name makes clear what it does.
Also organized the same day and at the same address: Veblen East Dairy Acquisition, LLC. I can't say for sure if this LLC is somehow connected with the high bidder in last week's auction, Vista Family Dairies, LLC.
I could pay the State of Minnesota $4 to see the detailed report, but I'm too much of a cheapskate to shell out lunch money for a lousy PDF. So I turn to the South Dakota Secretary of State's website, where our good and decent Secretary Chris Nelson lets me see those pulbic documents for free, the way they should be. Both of the acquisition LLCs have filed organization papers here in South Dakota as well. They are managed by AgStar Financial Services, the group that got Veblen West placed in receivership last March. Members of the Veblen East Dairy Acquisition LLC include FCS Financial of jefferson City, Missouri; GreenStone Farm Credit Services of East Lansing, Michigan; and M & I Regional Properties of Madison, Wisconsin. Veblen West Acquisition members include GreenStone and AgriBank of St. Paul, Minnesota.
There are still no documents in the South Dakota Secretary of State's corporate database authorizing "Vista Family Dairies LLC" to conduct business in South Dakota. So who placed that bid in court last week?
While I could be wrong, it appears the "Acquisition" companies are organized by the lenders for the purposes of bidding in the auction. My guess is they intended to bid the amount of their debt. If someone bids more, they will let them have it.
ReplyDeleteMy guess is Vista is not affiliated with the lenders.
Thanks, Troy. Can Vista bid if it has not yet filed its incorporation papers?
ReplyDeleteIf Vista is a properly organized to do business in another state, I believe the commerce clause in the Consitution allows them to purchase property in South Dakota. I don't know the timing and rules with regard to having to file papers in South Dakota.
ReplyDeleteEven if they are a new SD company, they have a timeframe for proper filings.