Cordes & Company

Hog producer in trouble in Illinois

A farrow-to-finish commercial hog business with 14,000 breeding sows and 132,000 wean-to-finish hogs at approximately 50 different locations spread across three states was experiencing cash flow problems and defaulted on its debt.  The lender engaged Cordes & Company during the forbearance period to assess the business operations and evaluate strategic options, including liquidation.  We recommended that the debtor sell a 50 percent equity interest in one of its profitable operations to the other partner to generate operating capital.  We also recommend several other ways to reduce costs and generate cash.  The debtor followed our recommendations.  When commodity markets turned around, the debtor’s cash flow once again turned positive.

Colorado
7979 E. Tufts Avenue
Suite 820
Denver, CO 80237
Telephone: 303.721.8755
Minnesota
2677 N. Innsbruck Drive
Suite A
New Brighton, MN 55112
Telephone: 612.455.0985
California
2030 Main Street
Suite 1300
Irvine, CA 92614
Telephone: 949.379.1202
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