A husband and wife had acquired and operated over a lifetime a substantial cattle operation as well as cash crop farming operation. In addition, a retail agricultural supply store including land and building had been established. The cattle and farming operations were leveraged to a production credit lender who maintained lines of credit collateralized by equipment, livestock, and crops in process. Land was held in family trust with some exceptions.
Wife died and husband shortly thereafter developed dementia, was incapacitated, and relocated to nursing home care. The two sons had drastically different goals. One desired to remain on the land and continue farming and ranching. The other lived in another locale and had no interest in farming or ranching. The Creditors had become nervous and were contemplating foreclosure of security interests. Management of the operation was in question.
Reconcile needs of incapacitated father and goals of sons, establish operational management structure with sons; reach accommodation with production creditor lenders; liquidate agricultural supply store and associated real estate together with any unproductive assets.
Loan workout and operation agreement reached with Lender. Oil and gas royalties utilized to maintain nursing care for incapacitated father; management structure in place to allow continuity through son who desires to continue operations and with other son controlling land trust. Loan workout successful through sale of livestock at times of market advantage; agricultural supply store listed and sold.