MONMOUTH, OR, August 27, 2012 – PR – Olsen Agricultural Enterprises, LLC, one of the states' largest private agricultural businesses, is pleased to announce that the United States Bankruptcy Court District of Oregon has confirmed the company's Plan of Reorganization. The Plan will be effective September 1, 2012.
Judge Frank R. Alley, presided at a hearing held today in Eugene to confirm the Plan that has been over a year in the making. “Today marks a major step in our reorganization and continuation as a leading farm and agricultural business in the state of Oregon,” said Ben Hanna, General Manager. "The Court’s approval validates all the hard work over the last year of our employees, owners, and advisors, as well as the cooperation of our valued vendors and creditors. Their hard work saved us from liquidation and preserved 35 jobs in the local community,” said Hanna.
The Court's approval, secured just 14 months after Olsen filed for bankruptcy on June 1, 2011, includes a plan to pay unsecured creditors in full plus interest within six years. As part of its reorganization, Olsen Ag returned approximately 1,600 acres of farmland to its primary lender, Rabo Agrifinance, in exchange for reduction of debt.
“The senior management is pleased the end of this reorganization is now in sight. . . “ says Hanna. Gary Lawrence of Hamstreet & Associates, the Company’s restructuring advisor, says "the reorganization has dramatically improved OAE's capital structure and set it up for long-term success. We are thrilled to have participated in the successful reorganization of an Oregon-based, multi-generation family farm. Any outcome that pays off creditors in full, saves desirable agricultural jobs in the community, and preserves family assets for future generations is cause for celebration."
Olsen Ag has been a family farming operation in Oregon's Willamette Valley for several generations. The reorganized Company farms approximately 6,500 acres. Historically, Olsen has primarily farmed grass seed, but the Company also produces grains for seed, peppermint for oil, various row crops, hazelnuts, blueberries, and wine grapes.