Swenson Brothers grain companies declare bankruptcyLANE — Two companies owned by brothers in Woonsocket and Lane have declared bankruptcy but plan to continue serving their customers.
By: Anna Jauhola, The Daily Republic
LANE — Two companies owned by brothers in Woonsocket and Lane have declared bankruptcy but plan to continue serving their customers.
Swenson Brothers Grain LLC, in Lane, and Swenson Brothers Partnership, in Woonsocket, voluntarily filed Chapter 11 bankruptcy on Oct. 17. The companies’ activities include grain hauling and a grain elevator in Lane.
Chapter 11 allows a debtor to maintain its business and control of assets during the reorganization, which the brothers plan to do, according to their attorney, Thomas Tobin, of Tonner Tobin and King in Aberdeen.
According to U.S. Bankruptcy Court records, Swenson Brothers Partnership owes nearly $800,000 in “trade debt.” The largest debts are $361,239.45 to Channel, of Chicago; $163,500 to Farmers Alliance, of Mitchell; and another $133,750 to Farmers Alliance.
Swenson Bros. Grain, meanwhile, lists total debts of about $1 million and zero total assets.
Although Swenson Brothers Grain plans to continue serving customers, there may be a disruption. The company did not renew its grain buyer/grain warehouse license in June, according to the Warehouse Division of the South Dakota Public Utilities Commission. Gary Hanson, chairman of the commission, said the facility cannot operate without the license.
According to the South Dakota Secretary of State’s website, Swenson Brothers Grain also has not filed its annual corporate paperwork for 2011.
Tobin did not return more calls for clarification regarding the case. Calls to Swenson Brothers locations went unanswered or unreturned.
The companies are set for meetings with creditors in November.