Vreba-Hoff

Situation

Vreba-Hoff Dairy Development, located in Coldwater, MI., was the largest developer of dairy farms in the Midwest. The Company’s dairy farms were not profitable and had incurred significant debt to achieve its growth.

It’s primary construction company had liens on the dairy farms. The liens were ultimately taken over by the construction company’s bank.

The Company was about to pursue a costly litigation strategy against the bank while running out of cash.

Solution

Amherst was retained to consult the company on a variety of financial issues. Amherst initiated and directed settlement discussions with the bank holding the construction liens.

Amherst also explored various operational strategies, including implementing a hedging strategy and installing digesters.

Results

The Company settled all issues related to the construction lien at a substantial discount to the claim with virtually no legal costs. As a result of the engagement, the business operations were stabilized. The Company installed digesters at many of its dairy farms.