New company taking on loan to Boersen Farms

Boersen Farms
Boersen Farms. (Aug. 30, 2017)

GRAND RAPIDS, Mich. (WOOD) — A new company has agreed to take on an unpaid loan of nearly $150 million to Ottawa County farming giant Boersen Farms.

LT Capital, LLC agreed to take ownership of Minnesota-based CHS Capital’s loan to Boersen, according to a document filed in federal court Monday. The documents also say that LT Capital intends to stop pursuing a federal lawsuit against Boersen.

In that lawsuit, which was filed earlier this year, CHS said the Zeeland Township farm owed it more than $145 million; other creditors said the farm owed them another $3 million. CHS claimed the Boersens lied about their harvest from last year and used some of the borrowed cash to buy a home.

A representative for Boersen told 24 Hour News 8 last week that the farm had reached a settlement with creditors but did not provide the details of that deal.

“The farming operation is in the middle of harvest now and we look forward to a successful harvest,” the chief restructuring officer for Boersen Farms, Randy Humphreys, told 24 Hour News 8 over the phone Wednesday night. “And we still have to continue working with the other creditors to work things out and we’re hopeful that it’ll all work out for the best.”

Michigan Department of Licensing and Regulatory Affairs records show LT Capital was formed late last month and is run by the CFO of Zeeland Farm Services, another family-owned farm in the area.