The Company is a livestock feed processor providing additional grain storage and elevator services to local farmers in and around Kalona and Washington, Iowa.
The Company also maintained livestock holdings in swine and poultry.
Finally, the company maintained a small retail operation at its primary grain elevator location in Kalona, Iowa.
The Company’s senior lender grew concerned with the financial performance of the Company due to ongoing operating losses, principally due to the livestock holdings.
FDP examined performance of each of the Company’s revenue streams and facilities to assess underperformance.
Through its examination, FDP determined the Company was adequately covered on a significant portion of its grain and livestock holdings due to its hedging strategies.
FDP determined additional capital was needed to maintain ongoing operations.
In addition, the Company maintained excess capacity at its Washington, Iowa location.
The Company sold its under-utilized grain storage facilities and injected the capital into the business.
Through FDP’s operational review, the Company funded its operational needs through the sale of an under-utilized grain storage facility.