Large grain merchant gone under.

[goodevans]

I can't see that happening

 

[PSQ]

The receivers will want it @£130
Contract is a contract

Made between two parties, one of which no longer exists. Unless the receivers sell the business as a a going concern, then there wont be a company to honour and service the terms of the contract. I very much doubt the contract could legally be transferred by the receivers to another trading business.

 

[HAM135]

Perfect opportunity for a farmer group buyout,wonder who the receiver is!!

 

[Hay Hoe Lets Mow]

Once again having absolute confidence your grain merchant will pay each and every time a truck leaves the farm is clearly far more important that the last 50p/t or £1/t when selling grain.

Do any of the grain traders on the forum know the scale of the problem or have a view? @crazy_bull

 

[Bill dog]

It’s crap for the staff, I was always dealt with fairly. Regardless of the price of the grain, having a coffee with Garry Armstrong, and hearing some of the rugby tales was always great craic!

 

[delilah]

6 businesses sell 80% of the UK's bread/ biscuits/ beer. How many grain merchants does that need ?
Market share is the root of all evil.

 

[Chae1]

Can't understand how anyone storing large amounts of grain long term has went under this year.

They were paying £130/t for malting barley harvest 20. That same barley is worth over £170/t as feed today.

 

[Chae1]

Once again having absolute confidence your grain merchant will pay each and every time a truck leaves the farm is clearly far more important that the last 50p/t or £1/t when selling grain.

Do any of the grain traders on the forum know the scale of the problem or have a view? @crazy_bull

Was saying that to someone else, glad they didn't go under at harvest when we had a lot of grain due for payment.

So if we did as you suggested we would just deal with large multi national companies trading grain?

Not the small guy. That's what the big boys want.

 

[Humble Village Farmer]

The receivers will want it @£130
Contract is a contract

They might forget to pick up anything over market value though

 

[Hay Hoe Lets Mow]

So if we did as you suggested we would just deal with large multi national companies trading grain?

My logic is simple, an extra £1/t is only an extra £29 per truck leaving the farm.... assuming OSR at £400/t each truck load leaving the farm is worth £11,600.... is the extra £29 worth it if you don't get paid!?

Everyone has a different view on risk, but I suggest everyone should be mindful of who they are trading with, especially with the return of more volatility in markets recently.

 

[alex04w]

Made between two parties, one of which no longer exists. Unless the receivers sell the business as a a going concern, then there wont be a company to honour and service the terms of the contract. I very much doubt the contract could legally be transferred by the receivers to another trading business.

You are wrong. The contract is between two parties, both of which continue to exist.

The company will be in administration, receivership or liquidation. The only thing that has changed is that the company is not under the control of its directors, but instead under the control of an Administrator, Receiver or Liquidator. The company continues to exist until is dissolved and struck off after completion of the insolvency event.

The person in control of the company, administrator etc, CAN enforce the contract. If it is profitable to do so, they WILL enforce it for the benefit of the creditors of the company. If it is not profitable to enforce it, they will disclaim the contract and notify you that they have done so.

No one should assume they are free of their legally enforceable contract - because they are not. Legal advice, or discussion with the administrator / receiver / liquidator is essential.

 

[Happy]

Once again having absolute confidence your grain merchant will pay each and every time a truck leaves the farm is clearly far more important that the last 50p/t or £1/t when selling grain.

Do any of the grain traders on the forum know the scale of the problem or have a view? @crazy_bull

Rumour I heard from someone in the trade is it Involved barley not being there when buyer came calling for it.
Probably a good few of them doing the rounds though.

 

[HAM135]

You are wrong. The contract is between two parties, both of which continue to exist.

The company will be in administration, receivership or liquidation. The only thing that has changed is that the company is not under the control of its directors, but instead under the control of an Administrator, Receiver or Liquidator. The company continues to exist until is dissolved and struck off after completion of the insolvency event.

The person in control of the company, administrator etc, CAN enforce the contract. If it is profitable to do so, they WILL enforce it for the benefit of the creditors of the company. If it is not profitable to enforce it, they will disclaim the contract and notify you that they have done so.

No one should assume they are free of their legally enforceable contract - because they are not. Legal advice, or discussion with the administrator / receiver / liquidator is essential.

So your saying barley would have to be supplied then we would become creditors and receive maybe 5p in the pound, don't think so somehow.

 

[Humble Village Farmer]

So your saying barley would have to be supplied then we would become creditors and receive maybe 5p in the pound, don't think so somehow.

Cleared funds before the lorry leaves the yard.

 

[PSQ]

You are wrong. The contract is between two parties, both of which continue to exist.

The company will be in administration, receivership or liquidation. The only thing that has changed is that the company is not under the control of its directors, but instead under the control of an Administrator, Receiver or Liquidator. The company continues to exist until is dissolved and struck off after completion of the insolvency event.

The person in control of the company, administrator etc, CAN enforce the contract. If it is profitable to do so, they WILL enforce it for the benefit of the creditors of the company. If it is not profitable to enforce it, they will disclaim the contract and notify you that they have done so.

No one should assume they are free of their legally enforceable contract - because they are not. Legal advice, or discussion with the administrator / receiver / liquidator is essential.

Assuming that the administrator has the funds to pay for the goods.
I’d be looking for full payment up front before I loaded a single grain out of the door.

 

[steveR]

The receivers will want it @£130
Contract is a contract

Will they pay/load as delivered or collected?

 

[pgk]

So your saying barley would have to be supplied then we would become creditors and receive maybe 5p in the pound, don't think so somehow.

And if you don't honour contract they would have to sue which requires them to find funds to do so, unlikely in that they are unlikely to be making much of a turn on each load so cost/benefit ratio unlikely to make it an attractive proposition.

 

[teslacoils]

So your saying barley would have to be supplied then we would become creditors and receive maybe 5p in the pound, don't think so somehow.

You would be obliged to sell it for the £130.

However, if barley was worth £140, there is nothing stopping you defaulting and paying the £10 difference. Alternative is written declaration from the administrator to pay the contracted £130. The 5p in the pound option need not apply.

 

[Wombat]

So your saying barley would have to be supplied then we would become creditors and receive maybe 5p in the pound, don't think so somehow.

That was my question, i have been involved in a none ag business that was forced to supply to a receiver knowing full well they would get no money but the receiver enforced the supply contract, nothing they could do. I wondered if grain was the same.

I was sure there was something similar done when Viking went down but fortunatley wasn't directly involved

 

[glasshouse]

The last time a grain merchant failed in south scotland it nearly ruined a number of farmers.
I heard of one who couldnt pay his rent who was allowed to carry on, but on an insecure tenancy now ended.