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Olsen's Mill to Close Grain Locations, Cut Jobs
Wisconsin Ag Connection - 03/30/2009

The receiver for the financially troubled Olsen's Mill in Green Lake County says the company will close 10 Wisconsin grain elevator locations and cut 118 jobs, but will likely remain open after next week's auction. According to the Milwaukee Journal-Sentinel, Michael Polsky filed notices with the state last week indicating the closings. Olsen's has been ordered to be put up for public bid on April 7 after it was forced into receivership last month.

The feed and farm supply company handles the corn purchasing contracts for two of the state's ethanol plants, including Renew Energy in Jefferson--the only such facility to declare bankruptcy in Wisconsin. Olsen's has operations in Jefferson, Oshkosh, Milwaukee, Westfield, Boscobel, Berlin, Stevens Point, Viroqua, Ripon, Wautoma and Belmont.

In January, BNP Paribas, a large European bank, filed a civil suit that claims Olsen's is insolvent and cannot pay back the money it borrowed from the bank in August 2007. An investigation by the bank has found that Olsen's misrepresented its assets, violated several terms of the credit agreement and concealed $21 million Renew Energy owed the mill for the purchase of corn and other products. The complaint also stated that Olsen's sold corn to Renew Energy at less than market prices from December 2007 to December 2008; and continued to sell grain to the ethanol plant even after Olsen's knew the company could not pay its bills.

As a result of the receivership terms, Paul Olsen, who served as president of Olsen's Mill, has agreed to step down from his position. He also serves as president of Renew Energy.


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