TOLEDO — The Chesterfield Dairy, operated by the Van de Kolk family near Lyons, Ohio, and the 2,100-cow Hopewell Dairy in Mercer County on the Indiana border were both placed into receivership by a bankruptcy judge Sept. 30.
Court action. The court action comes after the businesses were the subject of a lawsuit filed by AgStar Financial Services of Minnesota claiming multi-million dollar loan defaults.
Vreba-Hoff Dairy Development has served as a consultant and developer for both dairies, which are family-owned limited liability companies.
Cecilia Conway, business development manager for Vreba-Hoff Dairy Development, confirmed they have been advising both dairies.
Court filing. According to the U.S. Bankruptcy Court, Northern District of Ohio, Hopewell Dairy owes over $21 million to creditors, including AgStar Financial Services of Minnesota, which is seeking foreclosure on the dairy properties.
Others listed include Farm Credit Services of Mid-America, Rosebush Sale Barn, Midwest Dairy Investments, Stateline Farms, Caterpillar Financial Services, Ram Separation Equipment Co. and the Vreba-Hoff Dairy Development.
Taking control. Federal District Judge James G. Carr in Toledo appointed a Wisconsin firm, Roach & Associates LLC, to take over operation of the Chesterfield and Hopewell dairies.
According to the court, Chesterfield Dairy owes $8.5 million that was borrowed in 2006 and has not made a payment since March, according to the AgStar complaint.
Hopewell Dairy and Hopewell Dairy Leasing borrowed $11.2 million in 2006 from AgStar Financial Services of Minnesota and also have not made payments since March, the complaint stated.
A hearing was scheduled for Oct. 6. on a motion to continue the receiver appointment.
STAY INFORMED. SIGN UP!
Up-to-date agriculture news in your inbox!