Foster Swift Agricultural Law Update
Following an expedited auction process, the United States Bankruptcy Court for the Western District of Michigan entered an order on February 8, 2013, approving the sale of substantially all of the assets of Stamp Farms to Boersen Farms, Inc. As many Michigan farmers are aware, Stamp Farms (and related entities) sought Chapter 11 bankruptcy protection on November 30, 2012. Because Stamps Farms leased thousands of acres of farmland from West Michigan farmers, the bankruptcy filing created uncertainty and confusion for hundreds of lessors.
Most of those leases are included in the sale to Boersen Farms. As part of the approval of the sale, any defaults under the leases will have to be cured (paid) by March 30, 2013. The leases will then continue according to their terms with Boersen Farms as the new lessee.
Although the court has approved the sale, as of this writing, the sale has not yet closed. If the sale fails to close as anticipated, then the assets may instead be sold in one or more "parcel sale auctions," where the assets are sold piecemeal rather than to a single purchaser.
If you have questions about the Stamp Farms bankruptcy, please contact Laura Genovich.