Last month, in the Netherlands, the organic farm Oirschot Organics, went bankrupt. Trustee Geurt te Biesebeek of Aben & Slag Advocates compiled a bankruptcy report, clarifying why the farm went under and how cultivation could continue.
Several parties placed bids. In the end, the company sold for 38% above the appraised private property and movable property sale values. The property was to be handed over on March 3, the report's date. Te Biesebeek did not disclose who the buyer was, who wanted to remain anonymous. It is known, however, that the buyer 'has a soft spot for the organic sector'.
Negative operational result
Oirschot Organics went under after the business unexpectedly received a 'substantial claim' from an energy provider. That info was shared on the day after the bankruptcy ruling. The report shows that the creditor laid this claim because of an energy supply and purchase dispute. The grower is being accused of speculative trading.
Oirschot Organics grew its crops in a roughly 2.5-hectare greenhouse complex in Middelbeers, the Netherlands. They used to have a second location, but when the company went bust, that was no longer in operation. The business achieved a negative operational result in 2019 and 2021. In 2020, however, there was a plus of almost €100,000.
Speculative trading
The mentioned claim is the reason why the grower declared bankruptcy to the trustee. The report states that the energy supplier is accusing the grower of speculative trading. The grower had access to a CHP unit to produce electricity. They had already sold this power for a certain price without having purchased the gas required for its production.
The grower had mistakenly anticipated gas prices to fall, which did not happen. The sharp gas price hike meant the grower was ultimately unable to meet its obligations to the energy supplier and customer. The grower also cited the staff illness as another reason for the bankruptcy. That staff shortage brought about a financial burden.
Several bidders for restart
The farm was back in business on February 24. After the bankruptcy announcement, several parties showed interest. Eventually, the company was sold for €1.2 million, of which about €325,000 went to the mortgage and pledge holder. The property sold for €735,000 and the buyer paid €250,000, in goodwill, for the already planted crops. Between February 8 and 24, some workers attended to the crop.
Customer support
At the restart, it was stipulated that the buyer would pay the energy costs as of the bankruptcy date to a selected supplier. The buyer has since found a supplier and has entered into a retroactive contract.
As of February 4, Oirschot Organics no longer had a contract with the energy grid managing company. That company was prepared to wait for the restart negotiations. A customer agreed to give guarantees for other costs incurred during the continuation period. Oirschot Organics was a member of The Greenery.
Creditors
The trustee reported that the usual matters (probing, among other things, 'improper management' and 'fraudulent acts regarding creditors') are being investigated. As yet, there are no indications of this.
At the time of the report's writing, the trustee was aware of 23 unsecured creditors who have been contacted. An amount of €230,000 is outstanding. Creditor claims are being verified.
The trustee expects these creditors to be paid. How much depends on the Dutch Employee Insurance Agency and Tax Authorities' claims. And the energy purchaser/supplier's claim amount, which believes it is entitled to damages.
You can see the complete bankruptcy report in the Central Insolvency Register in the Netherland under bankruptcy reference number 01.obr.22.31.F.1300.1.22.