Large grain merchant gone under.

[glasshouse]

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.

Depends who is financing it

 

[Chae1]

I wasn't under any obligation to supply. Was pointed out when I signed contract. Only cereal contracts I'm aware of where there is a obligation to supply is those based on wheat futures prices that I have fixed on.

 

[Hay Hoe Lets Mow]

Guaranteed minimum price contract with no obligation to supply sounds very fishy to me.

Surely everyone would supply if the market was low (and Inglis would have the risk) yet if the market was high nobody has on obligation to supply??

I can't see what was in such a deal for Inglis apart from risk.... maybe such trading decisions contributed to their demise???

 

[Renaultman]

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.

Non agriculture related problems if what I have heard is true.

 

[Pringles]

I'm with @PSQ on this one. I would not let a pea of grain leave the farm.

My experience of this type of situation is that the Administrators/Liquidators are complete scum and you would not receive a penny!!!

We were "caught" by a company going bust in 2013, being a creditor receiving the Liquidators report annually makes me even more pee'd off than losing the original money!!

The liquidators sold assets which raised £1.54 million. Between then and now the liquidators have helped themselves to over £60K a year in "admin costs", their average hourly rate is £393.88 per hour and none of the creditors have received a penny!

 

[T C]

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.
[/QUOT
What happens if you do not make spec?
Under normal malting barley contracts crop is rejected and returned to farm.
Admix, moisture even SQC status would all constitute a rejection.

 

[T C]

I'm with @PSQ on this one. I would not let a pea of grain leave the farm.

My experience of this type of situation is that the Administrators/Liquidators are complete scum and you would not receive a penny!!!

We were "caught" by a company going bust in 2013, being a creditor receiving the Liquidators report annually makes me even more pee'd off than losing the original money!!

The liquidators sold assets which raised £1.54 million. Between then and now the liquidators have helped themselves to over £60K a year in "admin costs", their average hourly rate is £393.88 per hour and none of the creditors have received a penny!

I have been involved as a supplier to a couple of businesses that went into administration (subsequently folded). The Administrator charges fees that are totally unrealistic and any business that is struggling would have no chance of absorbing the overheads.
I am sure they charged around £100/hr for telephone and secretary services.
Funnily enough both were potato businesses!

 

[Widgetone]

Hearing of £35m, and empty grain stores when the buyer comes to collect - this is rumour mill, so don't take as factual.

 

[David.]

Its a recurring theme.
Viking "lost" a warehouse full of grain off the docks, in Spain i think.

 

[upnortheast]

The liquidators sold assets which raised £1.54 million. Between then and now the liquidators have helped themselves to over £60K a year in "admin costs", their average hourly rate is £393.88 per hour and none of the creditors have received a penny!

Yep, the only winner in these situations is the liquidators. Total parasites.

 

[Henarar]

I'm with @PSQ on this one. I would not let a pea of grain leave the farm.

My experience of this type of situation is that the Administrators/Liquidators are complete scum and you would not receive a penny!!!

We were "caught" by a company going bust in 2013, being a creditor receiving the Liquidators report annually makes me even more pee'd off than losing the original money!!

The liquidators sold assets which raised £1.54 million. Between then and now the liquidators have helped themselves to over £60K a year in "admin costs", their average hourly rate is £393.88 per hour and none of the creditors have received a penny!

I have been involved as a supplier to a couple of businesses that went into administration (subsequently folded). The Administrator charges fees that are totally unrealistic and any business that is struggling would have no chance of absorbing the overheads.
I am sure they charged around £100/hr for telephone and secretary services.
Funnily enough both were potato businesses!

So what value of grain do you arable farmers allow to leave the farm before you get paid ? do you spread it about to different buyers ?

 

[betweenthelines]

Depending on the exact terms of the Contract it may well be that the goods become the property of the buyer as soon as you sign.

 

[Courier]

Its a recurring theme.
Viking "lost" a warehouse full of grain off the docks, in Spain i think.

Will "Freeports" increase the likeleyhood of this ?

 

[marcot]

So what value of grain do you arable farmers allow to leave the farm before you get paid ? do you spread it about to different buyers ?

I'm a very small grower but I won't sell more than 2 loads/ month to any one merchant.
I sold 6 loads in April to 3 different merchants .....

 

[Humble Village Farmer]

Depending on the exact terms of the Contract it may well be that the goods become the property of the buyer as soon as you sign.

And I don't suppose many contracts are written out to benefit the farmer either.

 

[Henarar]

Depending on the exact terms of the Contract it may well be that the goods become the property of the buyer as soon as you sign.

Without paying???????
Fecking stupid to sign if so

 

[Henarar]

I'm a very small grower but I won't sell more than 2 loads/ month to any one merchant.
I sold 6 loads in April to 3 different merchants .....

I know nothing about selling grain but would think you are wise to do so, for the same reason I only sell a box full of cattle at a time as a years worth not paid for would finish me, same with contacting I wanted lots of customers not just one or two big ones

 

[marcot]

I know nothing about selling grain but would think you are wise to do so, for the same reason I only sell a box full of cattle at a time as a years worth not paid for would finish me, same with contacting I wanted lots of customers not just one or two big ones

I very nearly got caught when Wellgrain ( local grain merchant) went bust a few years ago. I was overdue payment for 3 loads of wheat in the January ....had to pester them for payment which in the end I got ....they went bust in the February! Since then I've been very wary !

 

[PSQ]

Just had a call from someone 'in the trade' on an unrelated matter, but naturally it came up in conversation.

"Inglis is a tricky one, as they dont send out contract confirmations to their suppliers, and everything is 'word of mouth'. How the administrators can enforce a 'word of mouth' contract remains to be seen."

 

[farmerm]

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.

"Contract, what contract, I don't remember this contract, show me the document with my signature on it.... show me the contract I signed that doesn't have a insolvency exit clause...