Farmtrac Receivership Letter

[32Ford]

I received a letter today from the attorney who has been appointed Receiver for Farmtrac North America. I suspect many others who purchased a Farmtrac tractor in the recent past have received the identical letter. In the letter it states: "Please submit all claims you may have against Farmtrac North America, LLC to us in writing on or before April 25, 2008."

As far as I know I have lost my "Less Than Zero Rebate Checks", and my warranty. Do I submit a letter stating this? Is this what they are asking for?
The letter describes this as "LS Cable LTD. vs Farmtrac North America." When I read this I sense that if there are any assets that Farmtrac has, LS is first in line to collect. The rest of us/me are allot further down the foodchain and there probably won't even be crumbs to worry about.

Not trying to be cynical but it is difficult not to be.

How are others going to respond to this letter?

Thanks

 

[SESS]

TO 32FORD
We received the same letter but we are a dealer and I have also questioned what we are supposed to put a claim in for?! In our case as a dealer-despite the fact that we are going to be far down on the totum pole to ever receive anything money(ies)-we still SHOULD file a claim for money (ies) that we are owed. You, as a customer should do the same. The deadline to file a claim is April 25 which means another month to wait...patiently?!

 

[Dargo]

I may be wrong (so don't get ticked), but in 'lawyer speak' I believe that letter implies that any current issue you have with the tractor needs to be listed as an outstanding debt with FarmTrac; which may or may not get paid. I suspect any issues that occur after that date have no chance of being paid.

This is really too bad. I really like the simple but proven design of the tractors. I believe that the tractors are likely to serve their owners for quite a while without issue. However, it obviously makes me now very hesitant to consider buying a FarmTrac. Obviously it would topically make sense to just view the new FarmTrac tractors as being used, as-is, tractors. However, the issues go further than that. If they don't get their act together, regardless of what people say, parts will become an issue and resale value will take a terrible hit. Hopefully things will get resolved.

 

[SESS]

I agree 100% with Dargo. This is kind-of-sort-of-like filing a claim in a probate estate claim. You need to have your claim listed as a debt, but there are guidelines as to who/what is paid first, second, etc. I, personally, do not see my dealership getting any money out of Farmtrac, but will still file my claim. I hope everyone will take the time and respond also. And like Dargo said, the more time that goes by, the more faith that is lost and its a shame because Farmtrac did have some good tractors.

 

[dgl24087]

In the "Farmtrac Troubles" thread, the Tarboro, NC newspaper article lists LS Cable as an unsecured creditor. That surprised me, I thought that any goods sold for distribution would be secured inventory. LS looks to lose a lot in this fiasco if that information is coreect. Won't Textron likely be the only one who will come out of this with anything, as they are listed as the only secured creditor?

 

[dgl24087]

In the "Farmtrac Troubles" thread, the Tarboro, NC newspaper article lists LS Cable as an unsecured creditor. That surprised me, I thought that any goods sold for distribution would be secured inventory. LS looks to lose a lot in this fiasco if that information is correct. Won't Textron likely be the only one who will come out of this with anything, as they are listed as the only secured creditor?

 

[sseelhoff]

This sounds to me like a an effort by the Trustee to determine all potential outstanding claimants for the bankruptcy filing. The Trustee handling Farmtrac's affairs will be required to file with the Court a list of all outstanding creditors.

If you send a response to the letter, you will be listed as a creditor or potential creditor. This will (theortically) put you in line for the distrubution of assets. If you do not respond to the letter, any potential claims you have will likely be extinguished by the bankruptcy court at some point during the bankruptcy proceedings. My suggestion would be to respond. You don't loose anything by doing it, and if they find a suitor to come in and assume any of the liablities in exchange for the assets (parts, tractors, dealer lists, equipment, etc...(i.e. Montana?) you would be protected.

 

[Brentwood Power Equipment]

Yeah, we got our letter and a call from Textron. They have some kind of deal they want to announce April 1. Wait n see continues!

 

[Dargo]

This sounds to me like a an effort by the Trustee to determine all potential outstanding claimants for the bankruptcy filing. The Trustee handling Farmtrac's affairs will be required to file with the Court a list of all outstanding creditors.

If you send a response to the letter, you will be listed as a creditor or potential creditor. This will (theortically) put you in line for the distrubution of assets. If you do not respond to the letter, any potential claims you have will likely be extinguished by the bankruptcy court at some point during the bankruptcy proceedings. My suggestion would be to respond. You don't loose anything by doing it, and if they find a suitor to come in and assume any of the liablities in exchange for the assets (parts, tractors, dealer lists, equipment, etc...(i.e. Montana?) you would be protected.

Precisely. I agree with you completely. I again wanted to say that this is really disappointing though. With the proven design and durability of the tractors, it has to be a problem rooted in management; not the tractors. That's just a bad deal. As others have said, with any luck, another company will negotiate and take over the brand and customer base. Although I currently do not own a FarmTrac, I just wanted to sincerely wish the best to all of you owners. I wouldn't get my hopes up too high, but I also wouldn't give up hope by any means. Good luck!