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Thread: Olsen's Mill in Wisconsin

  1. #1
    Junior Member Nauth is on a distinguished road
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    Olsen's Mill in Wisconsin

    After sale at auction, Olsen's Mill files to reorganize
    By Rick Romell of the Journal Sentinel

    Posted: Apr. 8, 2009 3:28 p.m.

    Hours after their business was auctioned off to creditors, the owners of financially troubled Olsen's Mill Inc. on Wednesday launched a last-minute effort to regain control of the company by filing for Chapter 11 bankruptcy.

    The move drew immediate opposition from the firm's principal lender and added a further twist to a snarled affair that involves a major Wisconsin grain handler - a company owned in part by a state senator.

    Olsen's Mill, based north of Berlin in Waushara County, operates 11 grain elevators across Wisconsin that are licensed to hold more than 22 million bushels. The firm was forced into receivership earlier this year by lender BNP Paribas over more than $58 million in obligations, and amid a tangle of complications that include the bankruptcy of a related company that operates Wisconsin's biggest ethanol plant.

    The owners of Olsen's Mill - brothers Paul Olsen, David Olsen and state Sen. Luther Olsen - have butted heads with receiver Michael S. Polsky as he has managed the firm's affairs for the benefit of its creditors.

    Tuesday, Polsky conducted an eight-hour-long auction of Olsen's Mill, with the winning bid, $18.2 million, coming from a firm affiliated with BNP Paribas and another Olsen's Mill creditor.

    On Wednesday, according to a court document filed by BNP Paribas, Green Lake County Circuit Judge William McMonigal approved the bid and authorized Polsky to transfer ownership of Olsen's Mill.

    Within hours, Olsen's Mill filed for bankruptcy protection, a move that could put the Olsen brothers back in charge of the firm. BNP Paribas, meanwhile, is arguing that the bankruptcy judge should abstain from the matter. That would allow the state court receivership case - and the sale of the company - to proceed.

    A bankruptcy court hearing is scheduled for late Wednesday afternoon.


  2. #2
    Junior Member Nauth is on a distinguished road
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    Facts about Olsen's Mill Bankruptcy and Fraudulant Activity:

    Page 8 (#20a)“Affidavit in Support of Complaint and Appointment of Receiver”

    “Olsen’s misrepresented to BNP Paribas: Including in its April 30, 2008 Borrowing Base Certificate $4.3 million in “cash” comprised of checks issued by Renew Energy (the “Checks”). The Checks had not been cashed by Olsen’s because Olsen’s knew that Renew Energy had insufficient cash to cover them. Deducting the $4.3 million in “cash” revealed that there was a Collateral shortfall which had been concealed by Olsen’s.”

    Page 8 (#20b)“Affidavit in Support of Complaint and Appointment of Receiver”

    “Including in its August 31, 2008 Borrowing Base Certificate 856,238 bushels of grain ($4.8 million worth) as current inventory when such inventory had previously been shipped to Renew Energy. Deducting this inventory revealed a Collateral shortfall which had been concealed by Olsen’s.”

    Page 8 (#20c)“Affidavit in Support of Complaint and Appointment of Receiver”

    “Including in its October 31, 2008 Borrowing Base Certificate,$2.4 million in equipment,$1 million of industrial solvents and $792,000 of fertilizer as “Feed Grains”.”

    Page 3 (#5)“Agreed Order Appointing Interim Receiver and Granting Other Relief”

    Within nine (9) days of Complaint from BNP Paribas,“Paul Olsen shall, and does hereby, immediately resign as an officer of Olsen’s Mill and shall relinquish all management authority of Olsen’s.”

    Fact: Page 9 (#23)“Affidavit in Support of Complaint and Appointment of Receiver”

    “Olsen’s has also reported that its warehouse receipt financing has been withdrawn.”

    Page 8 (#21a)“Affidavit in Support of Complaint and Appointment of Receiver”

    Based upon certain information provided by Olsen’s to the Lenders, for at least nine of the following thirteen months, December 2007 – December 2008, Olsen’s sold grain to Renew Energy at less than current market prices, resulting in a estimated net benefit to Renew Energy of approximately $9.5 million to the detriment of the Lenders and other creditors of Olsen’s. This discount has benefited Renew Energy, an affiliate of Olsen’s, while at the same time detrimentally affecting Olsens’s creditors, including the Lenders. More specifically, Olsen’s systematically transferred part of the Lenders’ Collateral at below market prices to an affiliate.”


    Page 6 (#15)“Affidavit in Support of Complaint and Appointment of Receiver”

    “As of January 22, 2009, the following Obligations are matured, due and unpaid under the Loan Documents:$58,495,263.98.”


    Page 10 (#24)“Affidavit in Support of Complaint and Appointment of Receiver”

    “Based upon my knowledge of Olsen’s financial condition, and the conduct of Olsen’s management (specifically the fraud by Paul Olsen and Liza Fritz), it is my opinion that it is imperative that a receiver be immediately appointed to operate Olsen’s, to preserve and protect Olsen’s assets, and maximize their value, to market and sell Olsen’s assets, resolve creditor claims against Olsen’s and make distributions to creditors of Olsen’s.”


    Page 5 (#11)“Affidavit in Support of Complaint and Appointment of Receiver”

    “…Capital Expenditures of $6.9 million incurred by Olsen’s and its Subsidiaries for the year ended September 30, 2008 which are in excess of the $2 million Capital Expenditure limitation during any calendar year; and (iv) Section 8.7(a) of the Credit Agreement as a result of Olsen’s failure to promptly give notice to the Agent of the occurrence and continuation of such Defaults and Events of Default under the Loan Documents.”


    Page 7 (#18)“Affidavit in Support of Complaint and Appointment of Receiver”

    “On or prior to September 15, 2008, Renew Energy confirmed to Olsen’s that Renew Energy does not have the ability to pay the $21 million receivable owed to Olsen’s. Olsen’s continued to ship grain to Renew Energy irrespective of the outstanding uncollectible receivables owed to Olsen’s by Renew Energy to detriment of Olsen’s’ creditors, including the Lenders.”


    Page 8 (#21b)“Affidavit in Support of Complaint and Appointment of Receiver”

    For many months, Olsen’s’ management has had knowledge that Renew Energy was not profitable and did not have the financial resources to meet its obligations to Olsen’s. Renew Energy currently owes at least $18 million in past due accounts receivable to Olsen’s and Olsen’s does not expect that Renew Energy will have the ability to pay the outstanding amounts owed to Olsen’s. Despite such knowledge, Olsen’s has continued to sell grain to Renew Energy and record such sales at values it does not expect to ultimately collect, to the detriment of the Lenders. Such continued sales have essentially constituted a knowing transfer of the Lenders’ Collateral to an affiliate of Olsen’s for little or no value.”


    Page 9 (#23)“Affidavit in Support of Complaint and Appointment of Receiver”

    “Representatives of Olsen’s, including its financial advisors have admitted to the Lenders and other third parties that Olsen’s is insolvent and that Olsen’s current financial position is unsustainable.”


    Page 9 (#21d)“Affidavit in Support of Complaint and Appointment of Receiver”

    The December 31, 2008 Borrowing Base Certificate reflects a $26 million reduction in Total Borrowing Base Collateral from the December 15, 2008 Borrowing Base Certificate. Olsen’s management described the Unrealized Forward Gains as unrealized gains from Forward sell contracts to Renew Energy that were priced above market. According to Olsen’s management, they made this reduction based on Renew Energy’s inability to pay current market prices, let alone above market prices. This reduction also reflects Olsen’s stated intention to dissipate the Lenders’ Collateral.”

    Sent: Friday, February 01, 2008 7:43 AM
    Subject: State Sen. Olsen drops role in pushing alternative fuel mandate

    Renewable fuels...
    creates jobs $$$$
    clean environment $$$$$
    supports local economy $$$$$$$
    keeps our dollars home $$$$$$$$$$
    its the future $$$$$$$$$$
    a flip flop senator who doesn't defend reality WORTHLESS !!!

    This email certainly suggests that at least one co-owner (Paul Olsen) of the plant that would benefit from the ethanol mandate was highly interested in Luther Olsen’s involvement.

    Within hours, Olsen’s chief of staff, Heather Smith sent out a lengthy email from her legislative account and copied to the more than 40 people who got the original email from Paul Olsen. It includes some pointed comments for his brother:

    “They know that you (Paul Olsen) are the ***** in Luther's armor.”

    Smith also explains:

    But, and clearly you don't realize this, Luther's constituents heard this, and reacted. And not 3-4-5-10 people. We got dozens of calls and emails just yesterday alone. From constituents. Not from just people who hate ethanol, although there were a few of those. But from people who think that Luther is dirty. That he's deceitful. That you are. That he's pulling a fast one on everyone, so that you and he benefit. These are the people Luther asks permission from every few years to keep his job.

    “There were not a hundred calls, or ten, or EVEN ONE CALL from a constituent who wanted to tell Luther, "Heck yeah, vote for this, it's great!" We got a memo from a "special interest group" and the DNR, and heaven knows the DNR should always be listened to.(BUT PAUL OLSEN DOES NOT LISTEN TO THE DNR...THAT IS WHY HE HAS TWO FINES FOR $75,000 EACH OVER THE LAST TWO YEARS FOR AIR AND WATER POLLUTION VIOLATIONS)(AND A FELONY CONVICTION FROM THE FEDERAL GOVERNMENT)

    "And YOU (Paul Olsen). Why you? Well, if one Olsen is a dirty sleaze whoring for the rest of the clan's money interests, then you all probably are just as scummy. And, then starts the looking into family business "problems" "legal troubles" "VIOLATIONS" "shady transactions" (OH MY PAUL OLSEN! HEATHER PEGGED YOU A YEAR AGO! AND SO DID BNP PARIBAS..NOW YOU HAD TO RESIGN OLSENS MILL IN A CLOUD OF BANK FRAUD AND BANKRUPTCY!)

    From: Smith, Heather, Chief of Staff for State Senator Luther Olsen
    Sent: Friday, February 01, 2008 12:44 PM
    To: Paul Olsen; David Olsen


  3. #3
    Junior Member Nauth is on a distinguished road
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    Oh glowplug, or should I say one of the Olsen Mill Brothers or better yet glowplug the ***-clown!! You are such a piece of sh*t! The federal judge threw out your last attempt to decieve the court today you fuc*ing loser!! Tomorrow Olsens Mill will be sold ... way to go you fuc*ing bankrupt loser!

    Where is your big story on how olsens mill will screw its creditor BNP Paribas? You are such a fuc*ing joke and loser at life glowplug!!

    Glowplug, you are the reason people hate ethanol you fuc*ing loser at life!! ha ha ha


    A bankruptcy judge late Wednesday tossed out a last-minute bid by the owners of Olsen's Mill Inc. to temporarily regain control of their financially distressed company, one of largest grain handlers in Wisconsin.

    The decision could pave the way for a sale of the firm to creditors - a transaction another judge was poised to rule on earlier Wednesday until the Olsen's owners brought the proceedings to a halt by filing for Chapter 11 bankruptcy.

    The moves added further twists to a snarled affair involving a company that is affiliated with two of Wisconsin's major ethanol plants and is owned in part by state Sen. Luther Olsen (R-Ripon).

    It's also a company vital to Wisconsin farmers who deliver grain to the 11 Olsen's Mill elevators scattered across the state. With the financial interests of those farmers at stake, the state and federal agriculture departments have closely monitored developments since a lender forced Olsen's Mill into receivership in late January.

    Once profitable, Olsen's Mill lost $30#8194;million last year as corn prices plunged, the company made bad bets with its hedging strategy and the ethanol market, on which Olsen's depended heavily, turned sour.

    With the company's finances teetering, its chief lender, French bank BNP Paribas, pushed for receivership, a bankruptcy-like proceeding in which a company's assets are sold and the proceeds are distributed to creditors.

    Olsen's officially accepted the receivership, which appeared to move toward culmination Tuesday with an auction overseen by attorney Michael Polsky, the court-appointed receiver.

    The auction, held at the Milwaukee Athletic Club, attracted 10 bidders and lasted eight hours. The winning bid, $18.2#8194;million, came from a company affiliated with BNP Paribas and another Olsen's lender.

    Wednesday morning, Polsky submitted that result to Green Lake County Circuit Judge William McMonigal. McMonigal has been presiding over the receivership, and his approval is necessary for any sale.

    After a hearing of at least two hours, McMonigal was about to rule when Olsen's Mill announced it had filed for bankruptcy protection, a move that immediately stopped the Green Lake proceedings.

    Late Wednesday afternoon in bankruptcy court in Milwaukee, Olsen's Mill attorney Paul G. Swanson said creditors would be best served if Paul and David Olsen - who share ownership with their brother Luther and ran the company before the receivership - were again in control until the firm was sold.

    Swanson said a group led by Phillip J. Martini, president of Oshkosh-based contracting firm C.R. Meyer and Sons Co., would top the BNP Paribas bid and lend money so Olsen's could operate during bankruptcy.

    The Martini offer, however, wasn't made in the receivership auction. Rather, it was a verbal offer by Martini in McMonigal's court Wednesday morning, after the auction had closed.

    Richard Braun, a Wisconsin assistant attorney general who has been monitoring the Olsen's situation, said moving the case to bankruptcy court after some two months of state court oversight would be disastrous.

    "To start the process all over again at this stage is going to be the death knell for this company," Braun said.

    Ultimately, Bankruptcy Judge Pamela Pepper sided with Braun and BNP Paribas and dismissed the Olsen's Mill bankruptcy filing.

    The company didn't seek bankruptcy protection until "you were at the moment of a decision being made" by McMonigal, Pepper said. It would be inappropriate, she said, to start over in federal court when the state proceedings were almost completed.

    The case will now be returned to McMonigal, who will decide whether to approve the auction results.

  4. #4
    Senior Member studman is on a distinguished road
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    Hey You can hate corn ethanol but stand back on cellulosic ethanol. Always it's greed, corn farmers greed this time. The U S needs to develop cellulosic ethanol to kick Islam in the groin! Cheap cellulosic ethanol will get this country off oil addiction. I don't bow to the House of Saad. [8D][8D][8D][8D][8D][8D]

  5. #5
    Senior Member misspenn is on a distinguished road
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    [quote][i]Originally posted by studman[/i]
    Hey You can hate corn ethanol but stand back on cellulosic ethanol. Always it's greed, corn farmers greed this time. The U S needs to develop cellulosic ethanol to kick Islam in the groin! Cheap cellulosic ethanol will get this country off oil addiction. I don't bow to the House of Saad. [8D][8D][8D][8D][8D][8D]

    Oouuuu, a republican farmer admitting greed. lol

  6. #6
    Junior Member TonyK is on a distinguished road
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    1st time poster, and definitely last time I will be here, but in viewing Olsens Mill stories online I came across a post here that said, "glowplug you assclown" in a story about Olsens Mill.

    I could not resist reading everything stated, and yes glowplug you are an assclown!

    You state no facts or even anything vaguely competent glowplug. What an assclown.

    Oh by the way, your buddies paul and david olsen will be sued personally for the forty million in fraud and stealing they committed! They will lose the land in olsen bros, their stake in utica energy, and their stake in renew energy. Guess who will then own the land that olsens mill sits on? Yes, and your fraudulant olsens mill will be evicted. This is far from over glowplug the assclown. Only an assclown would be aligned with such a fraudulant and corrupt company such as olsens mill

    Good luck when your forward contracts this fall are not paid, and olsens mill declares voluntary bankruptcy to get out of paying seven to eight dollars a bushel of corn they promised you all in the forward contracts.

    Assclowns like you glowplug will be the first to cry and complain.

  7. #7
    Senior Member glowplug is on a distinguished road
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    Don't feed the trolls, folks.

    Call me all the names you wish, but don't call me late for supper. Anyone curious on my tractor seat view of this can go to the Bio-fuels section here on AgWeb. No need to respond to Tony K, Nauth, etc. Let them stew in their own juices.


  8. #8
    Junior Member JerryTrish is on a distinguished road
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    Here is a revealing podcast on the Olsen Brothers David, Paul, and Luther and the fraud and deception they are involved in with regards to bankrupt and fraudulent Olsens Mill and Renew Energy of Wisconsin, USA:

    http://a1135.g.akamai.net/f/1135/18227/1h/cchannel.download.akamai.com/18227/podcast/MILWAUKEE-WI/BLNG-IP/Belling6_04-17-09.mp3?CPROG=PCAST&MARKET=MILWAUKEE-WI&NG_FORMAT=personality&SITE_ID=3627&STATION_ID=B LNG-IP&PCAST_AUTHOR=Mark_Belling&PCAST_CAT=Talk_Radio& PCAST_TITLE=Mark_Belling_Show_Podcast

    The whole Olsens Mill accounting staff quit along with their tax auditor accounting firm in April 2008 because they did not want to go along with the SITUATIONS that Paul Olsen and his newly promoted pet of vice president of finance, Liza Fritz, was demanding from them in the form of committing tax and accounting FRAUD.

    Glowplug you are an ***-CLOWN!!!!!!!

    Both Olsens Mill and Renew Energy committed bank fraud, lied, stole, and paul olsen and liza fritz should be in jail.

    Banks BNP Paribas and Bankers Bank of Madison were defrauded with both accounting and tax fraud. This was a crime glowplug (or should I say paul olsen hiding behind the troll of glowplug) you ***-CLOWN!!!

  9. #9
    Senior Member db51 is on a distinguished road
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    I don't get it. What's wrong with fraud? Isn't that the M.O. promoted by our government and Wall Street? Seems to me this type of behoavior should be rewarded. Why not throw some taxpayer dollars at this alleged fraud scheme like we've done with the rest of the alleged fraudsters?

    Seems to me fraud is the new business model of choice for the future. I dan't understand some of you newbies being critical of the Plugster and calling him names.

  10. #10
    Senior Member r3020 is on a distinguished road r3020's Avatar
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    Troll, if you want to mess up one thread with
    your long link, have at it, no need to
    mess them all up.

    If it weren't for lawyers we wouldn't need them-Mark Twain

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