• Industrial Surfacing Corp. of Urbana Files for Chapter 11

    Industrial Surfacing Corp. of Urbana, Ill has filed for Chapter 11 bankruptcy protection.  The business is a rock surfacing company that works with electrical and petroleum firms to provide drainage surfaces, erosion abatement, berm construction and more. The company has offices located in Texas, Louisiana and Indiana as well as its office in Illinois. Documents filed in May 2011 list $1.53 million in assets and $4.04 million in liabilities.

    Company President Rodger Ferguson has made no comment about the bankruptcy filing to date.

    Listed in the filing are approximately 2.2 million in secured claims. The largest claim is $1.54 million from Prospect Bank in Champaign and the second largest claim is $410,000 from FCC Equipment Financing of Jacksonville, Fla.

    Unsecured priority claims include $49,465 in gross wages owed to 12 people. Ferguson is owed the largest amount of $25,500. Also listed in the filing is $63,227 in contributions owed to employee benefit plans. The largest unsecured priority claim is $272,253 that is owed to the Internal Revenue Service. Unemployment insurance payments are owed to Illinois, Texas, Louisiana and Michigan.

    Fifty-two creditors are listed for unsecured non-priority claims. The largest claim is for $530,588. Claims for $158,070 and $114,000 are associated with loans made to the business by Rodger Ferguson and Rebecca Ferguson, respectively.

    The $1.53 million in assets include a Cessna airplane, dozens of vehicles, and various pieces of equipment.

    Filing in bankruptcy court is a complex process, one that requires assistance from a bankruptcy professional. Contact a Chicago bankruptcy attorney for help with your situation.

  • Wisconsin Ethanol Pioneers File Bankruptcy with a Debt Load of $100 Million Plus

    Two Wisconsin brothers who pioneered ethanol production in the state now have outstanding debts of over $100 million after their agricultural holdings fell apart.

    Paul and David Olsen owe money to several banks, lawyers, the Wisconsin Department of Transportation as well as their mother. The total of the outstanding debts is $104 million.

    The Olsens once owned stakes in two ethanol plants, a crop service providing fertilizer, seed to farmers, five farms, and grain mills that purchased crops from farmers located in eastern and central Wisconsin. However, the ethanol industry crash and spike in corn prices that happened in 2008-09 gravely wounded the family businesses.

    The Olsen’s Mill Inc. chapter 11 bankruptcy reorganization started in a Green Lake County courthouse in 2009. It has since spread to the Wisconsin Supreme Court, the New York Supreme Court, four county courthouses, and recently to the U.S. District Court for Eastern Wisconsin where the brothers filed for personal bankruptcy.

    According to the brother’s bankruptcy case file, they personally guaranteed a  loan of $50.7 million borrowed from BNP Paribas. There is also  $20.7 million Utica Energy borrowed from Dougherty Funding LLC. Records also show that the brothers owe West Pointe Bank $27.5 million on property mortgages, Citizens First Bank $1.2 million on a grain elevator and WisDOT $2.5 in financial assistance to install rail spurs and purchase train cars.

    If you are considering bankruptcy court, contact a Chicago bankruptcy attorney for more information. He can help you make the right decision for your situation.