Stamp Farms details preliminary proposed allocation of purchase price

By Caroline Salls

Pittsburgh, Jan. 24 - Stamp Farms, LLC made a court-ordered filing Wednesday that details the preliminary allocation of the proposed $22.8 million purchase price to be received for its assets under a stalking horse bid from Boersen Farms, Inc., according to a filing with the U.S. Bankruptcy Court for the Western District of Michigan.

As previously reported, Stamp Farms received preliminary approval of some of the bid procedures for its proposed asset sale last week. The court scheduled a hearing for approval of the stalking horse purchase agreement for Jan. 28 and ordered the company to file the purchase price allocation.

Stamp Farms said it will amend the allocation as discrepancies related to the complexity of its estates and the significant number of property items proposed to be sold in a bulk sale auction are resolved.

According to the preliminary report, the purchase price will be allocated as follows:

• A total of $4.78 million will be allocated to real property leases;

• Farm machinery represented by non-irrigation assets, including rolling stock, has been allocated $11.5 million of the purchase price;

• A total of $4.01 million is currently proposed to be allocated to irrigation equipment and split among the three primary components of the irrigation equipment, with $2.76 million proposed to be allocated to pivots, $919,442 to generators and $328,000 to pumps; and

• Inventory and software have been allocated a total value of $282,500 for purposes of the bulk sale auction. Since all of these assets are subject to a first-priority security interest in favor of Wells Fargo Bank, Stamp Farms said no piecemeal allocation of value by asset is necessary.

Stamp Farms, a Decatur, Mich., commercial grain farming business, filed for bankruptcy on Nov. 30. Its Chapter 11 case number is 12-10410.

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