SESS
Gold Member
Brentwood Power Equipment said:
Did the email come directly from Tarboro? I haven't received anything but keep checking the emails. Maybe tomorrow will be a good friday!!
FarmTrac Troubles
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Did the email come directly from Tarboro? I haven't received anything but keep checking the emails. Maybe tomorrow will be a good friday!!
country69
Member
Published March 24, 2008 10:49 am -
Farmtrac puts admin staff back to work
Tarboro company owes more than $14 million
BOB BENEDETTI
Staff reporter
An ailing Tarboro-based farm implement company opened its doors last week for business just enough for a few workers to get a foot inside.
Farmtrac North America has a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St., according to Jim Marrow, the Tarboro attorney who assumed court-ordered duty as Receiver of Farmtrac on Feb. 27.
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped.
Farmtrac owes more than $14 million in loans and legal fees to secured creditor Textron Financial Corp. of Atlanta and unsecured creditor LS Cable Company Ltd., of Seoul, South Korea.
Marrow has appointed one manager and about 12-13 administrative helpers on the payroll.
Led by Doug Gurkins of Washington, N.C., a property and land evaluator, the group's job is to handle a backlog of parts and limited warranty issues that have been paralyzing the more than 300 Farmtrac dealers nationwide unable to support customers and unable to sell enough goods to keep doors open.
"We needed to create billing and processing mechanisms" to serve dealerships, Marrow said.
Although Farmtrac employees voluntarily gave five to six hours daily during the plant closing in an effort to continue basic parts and phone support, numbers and support fizzled.
Marrow called the effort of up to 20 workers each day "a real show of loyalty" albeit a disheveled one likening it to "a Boy Scout troop with nobody in charge" after company management disappeared and "created a void" in leadership.
For dealers across the country, that eight-week gap has eroded confidence so badly, it is questionable if dealers would be willing to do anything beyond offloading Farmtrac goods.
Marrow believes that securing a comprehensive maintenance program with a third-party could be the lynchpin to retain present Farmtrac dealers. Discussions with undisclosed service vendors are underway, but no agreement has been reached.
According to Vice-Chairman and Co-owner Ted Wade of Montana Tractors, who shares Middle Eastern-based Escorts, Ltd. as a parent company, the Springdale, Ark., tractor firm has an interest in "helping" financially ailing Farmtrac by "representing its warranty, parts and service" segments.
During a recent phone conversation with Wade, the Montana Tractor leader did not confirm nor deny direct discussions with Farmtrac executives. Both groups had representatives in New Delhi, India during early March.
Marrow also stressed that quick actions are also critical.
"We will lose a lot of brand value if we let it linger," Marrow said "and the selling season is ending rapidly."
The Daily Southerner, Tarboro, NC - Farmtrac puts admin staff back to work
Farmtrac puts admin staff back to work
Tarboro company owes more than $14 million
BOB BENEDETTI
Staff reporter
An ailing Tarboro-based farm implement company opened its doors last week for business just enough for a few workers to get a foot inside.
Farmtrac North America has a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St., according to Jim Marrow, the Tarboro attorney who assumed court-ordered duty as Receiver of Farmtrac on Feb. 27.
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped.
Farmtrac owes more than $14 million in loans and legal fees to secured creditor Textron Financial Corp. of Atlanta and unsecured creditor LS Cable Company Ltd., of Seoul, South Korea.
Marrow has appointed one manager and about 12-13 administrative helpers on the payroll.
Led by Doug Gurkins of Washington, N.C., a property and land evaluator, the group's job is to handle a backlog of parts and limited warranty issues that have been paralyzing the more than 300 Farmtrac dealers nationwide unable to support customers and unable to sell enough goods to keep doors open.
"We needed to create billing and processing mechanisms" to serve dealerships, Marrow said.
Although Farmtrac employees voluntarily gave five to six hours daily during the plant closing in an effort to continue basic parts and phone support, numbers and support fizzled.
Marrow called the effort of up to 20 workers each day "a real show of loyalty" albeit a disheveled one likening it to "a Boy Scout troop with nobody in charge" after company management disappeared and "created a void" in leadership.
For dealers across the country, that eight-week gap has eroded confidence so badly, it is questionable if dealers would be willing to do anything beyond offloading Farmtrac goods.
Marrow believes that securing a comprehensive maintenance program with a third-party could be the lynchpin to retain present Farmtrac dealers. Discussions with undisclosed service vendors are underway, but no agreement has been reached.
According to Vice-Chairman and Co-owner Ted Wade of Montana Tractors, who shares Middle Eastern-based Escorts, Ltd. as a parent company, the Springdale, Ark., tractor firm has an interest in "helping" financially ailing Farmtrac by "representing its warranty, parts and service" segments.
During a recent phone conversation with Wade, the Montana Tractor leader did not confirm nor deny direct discussions with Farmtrac executives. Both groups had representatives in New Delhi, India during early March.
Marrow also stressed that quick actions are also critical.
"We will lose a lot of brand value if we let it linger," Marrow said "and the selling season is ending rapidly."
The Daily Southerner, Tarboro, NC - Farmtrac puts admin staff back to work
Tim C,
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks
That is a mis-print, Escorts and Montana have no affiliation...unless something has happened since this whole deal went down...but we would have heard about this from somewhere else besides a newspaper in NC...They probably meant LS Cable.
"Tim C,
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks"
That is why you should trust 25% of what you read in the newspapers and only 5% of what you read on the internet.
One big thing that have been wrong in The Dailysoutherner. LS Cable pushed Farmtrac into receivership, not Textron as reported by them. If you look at the letter everyone just received, you will see it is LS vs Farmtrac. Textron is not mentioned. The rest of the reporting is just as suspect. It is limiting that they are the only source of information for the general public for two reasons. First, they are too close to the story. Second, there is not another news source to balance what they report.
The only thing Montana and Farmtrac have in common is they have contracts to buy LS tractors. Same as McCormick. They share nothing else.
Tim
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks"
That is why you should trust 25% of what you read in the newspapers and only 5% of what you read on the internet.
One big thing that have been wrong in The Dailysoutherner. LS Cable pushed Farmtrac into receivership, not Textron as reported by them. If you look at the letter everyone just received, you will see it is LS vs Farmtrac. Textron is not mentioned. The rest of the reporting is just as suspect. It is limiting that they are the only source of information for the general public for two reasons. First, they are too close to the story. Second, there is not another news source to balance what they report.
The only thing Montana and Farmtrac have in common is they have contracts to buy LS tractors. Same as McCormick. They share nothing else.
Tim
Tim,
I did not receive the LS letter or at least haven't so far. I did receive the Gurkins letter however. I don't know if they expect to sell much on C.O.D. Most of us will use them as last resort rather than pay C.O.D. charges which will only make things worse.
Thanks for clarifing the Parent thing in the 'Southerner. I didn't think it was fact but if you know R.M. who used to be with Montana you think nothing is beyond him and maybe the new guy at Montana also.
Thanks again,
By the way there is another thread that speaks of a Textron anouncement on Apr 1. I hope it isn't just for April Fools. I haven't had any problems with Textron so I hope it is something beneficial.
I did not receive the LS letter or at least haven't so far. I did receive the Gurkins letter however. I don't know if they expect to sell much on C.O.D. Most of us will use them as last resort rather than pay C.O.D. charges which will only make things worse.
Thanks for clarifing the Parent thing in the 'Southerner. I didn't think it was fact but if you know R.M. who used to be with Montana you think nothing is beyond him and maybe the new guy at Montana also.
Thanks again,
By the way there is another thread that speaks of a Textron anouncement on Apr 1. I hope it isn't just for April Fools. I haven't had any problems with Textron so I hope it is something beneficial.
if you go to the dailey southerner website and click on old archives,you will find a story by Sue Stuart,written probably one and a half or two years ago.this story outlines the actual ownership of Farmtrac of north america,which can be quite cunfusing .it appears that Escorts of india owns 49% of Farmtrac and Beaver Creek holding co. owns 51%.now it gets confusing,Escorts also holds 51% of Beaver Creek and Universal Tractor of romania holds the other 49%. what this boils down to is that Escorts actually owns 75% of Farmtrac and universal tractor owns the other 25%.in another story in triangle business journal dated feb. 24,2006, it was reported that montana was at that time negotiating with universal tractors to purchase it's 25% of Farmtrac stock.I do not know if this was accomplished or not. the article also stated that Montana was negotiating to buy a universal tractor plant in romania. makes one wonder whats really going on.
SESS
Gold Member
In late to mid 2007, Montana had started negotiations with Farmtrac again, but it once again fell through. Who knows at this point, if it has started up again.
Montana owns no part of Beaver Creek or Farmtrac LLC or Escorts.
Sell of Beaver Creek stock had to be approved by the directors of Beaver Creek. There were three board members. Two from Escorts and one from Universal Tractor.
Vote was 2 to 1 against. I will let you figure out how each party voted.
The Universal factory was worth more as open ground. I suspect it has been torn down by now. Their tooling was finished and they had no hope of meeting Tier II, much less Tier III.
This constant effort to tie Montana to Farmtrac is getting old.
Tim
Sell of Beaver Creek stock had to be approved by the directors of Beaver Creek. There were three board members. Two from Escorts and one from Universal Tractor.
Vote was 2 to 1 against. I will let you figure out how each party voted.
The Universal factory was worth more as open ground. I suspect it has been torn down by now. Their tooling was finished and they had no hope of meeting Tier II, much less Tier III.
This constant effort to tie Montana to Farmtrac is getting old.
Tim
it appears Tim C is much closer to Montana tractor's insiders info than the rest of the ones who post on this thread.however I wonder if the universal tractor plant is so worthless,then why does Montana's sales brochure list three of their model tractors as being built by universal.
the negotiations I was refering to was Not the one to purchase stock in Beaver Creek from escorts. but rather a effort by Montana to purchase Farmtrac stock from universal.I know of no public disclosure concerning this effort by Montana.if you have factual info about Montana and universal talks,please share.
Farmtrac LLC is/was owned by Beaver Creek Holdings. Beaver Creek was owned by Escorts and Universal with the board set up as I stated before. So, Montana's action was to purchase Universal's interest in Beaver Creek in an effort to enter the back door into Farmtrac ownership. Like I said, vote was two to one against. It was a rather ugly meeting to say the least.
Farmtrac LLC saw that Universal was not going to meet Tier I and quality had fell off. This lead to the discontinuing of the Universal line with Farmtrac. Same time frame had Rodney Miller as CEO of Montana (an old Long employee). He looked at how many tractors Long had sold and the future parts business. So he cut a deal with Universal for a few tractors and parts access. What you see today for sale at Montana is the tractors from the very first order. These tractors are that old. Great discounts, but very old as a new tractor goes. In the mean time, all the things I stated earlier transpired. The factory is in the middle of town and the dirt is worth more than the factory as a whole. It is gone. Parts are coming from clone factories in other countries. So many Universal tractors out there that parts will always be available some where and some how.
A side note about the factory. It would never have lived as long without government money. When that country entered into the EU a condition was no more government money helping hold a company together. You will notice the date of membership into the EU is very near the closing date of the factory.
I know of no notes or newspaper accounts that cover the meeting between Beaver Creek, Escorts, Montana and Universal. That does not surprise me as each is not a publicly traded company and outside of the ownership has no need or desire to publish information about their business deals. That very fact has dealers in the current mess with Farmtrac. The lack of public information allowed the ownership and management to hide the financial records from dealers.
Tim
Farmtrac LLC saw that Universal was not going to meet Tier I and quality had fell off. This lead to the discontinuing of the Universal line with Farmtrac. Same time frame had Rodney Miller as CEO of Montana (an old Long employee). He looked at how many tractors Long had sold and the future parts business. So he cut a deal with Universal for a few tractors and parts access. What you see today for sale at Montana is the tractors from the very first order. These tractors are that old. Great discounts, but very old as a new tractor goes. In the mean time, all the things I stated earlier transpired. The factory is in the middle of town and the dirt is worth more than the factory as a whole. It is gone. Parts are coming from clone factories in other countries. So many Universal tractors out there that parts will always be available some where and some how.
A side note about the factory. It would never have lived as long without government money. When that country entered into the EU a condition was no more government money helping hold a company together. You will notice the date of membership into the EU is very near the closing date of the factory.
I know of no notes or newspaper accounts that cover the meeting between Beaver Creek, Escorts, Montana and Universal. That does not surprise me as each is not a publicly traded company and outside of the ownership has no need or desire to publish information about their business deals. That very fact has dealers in the current mess with Farmtrac. The lack of public information allowed the ownership and management to hide the financial records from dealers.
Tim
Reading again I see some confusion in ownership of Farmtrac.
There was never anything like Farmtrac stock. The only way to buy Farmtrac was by purchasing a stake in Beaver Creek. Universal signed a very poor agreement in stating that a majority of the board had to approve the sale of Beaver Creek stock. Since they only held 1 seat on the board they had no chance of ever selling their share without Escorts approval. In all the excitement leading up to the meeting I was reminded time after time that Escorts would be giving two "NO" votes. Hence, I was not surprised by the outcome of the meeting. 2-1
On the other side, I wonder what could have been gained by Montana owning a minority stake as they would have been overruled at every meeting.
It was interesting all the management changes after the meeting on all sides.
Tim
There was never anything like Farmtrac stock. The only way to buy Farmtrac was by purchasing a stake in Beaver Creek. Universal signed a very poor agreement in stating that a majority of the board had to approve the sale of Beaver Creek stock. Since they only held 1 seat on the board they had no chance of ever selling their share without Escorts approval. In all the excitement leading up to the meeting I was reminded time after time that Escorts would be giving two "NO" votes. Hence, I was not surprised by the outcome of the meeting. 2-1
On the other side, I wonder what could have been gained by Montana owning a minority stake as they would have been overruled at every meeting.
It was interesting all the management changes after the meeting on all sides.
Tim
Charolais
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taxpayer said:
Glad you found that and it is correct from what I've been told as the years have gone by. I'll add that the parcel of land that Montana bought near/across the road from Farmtrac was owned by Universal Tractor of Romania.
I bought my Farmtrac in 2004 and it has Long Agribusiness across the front decal and on the loader, Model 80 and is now the 675. I also own a 2610 Long and that number was changed to 680 by Long a few years after I bought mine. Several months after I bought the FT 80 I saw two Long tractors, one was the old 680 and don't know what the other model was but both were in Farmtrac colors on my dealers lot. Several months after that Farmtrac no longer offered those two models of Long tractors in the Farmtrac line up. Then the same two tractors showed up on the Montana list and were still there the last time I looked. Only difference is Montana had some improved changes to those models like wet brakes and can't remember the other change right off now. Montana has tried several times to merge or take over Farmtrac and I expect they may just do it this time. I just hope if they do they have to keep the utility line too.
Several months ago I was told there were no parts coming out of Universal Tractor of Romania. That may have change now. I think that plant is owned by the government there too. We still have a good source of those Long parts, so no worry on that. It's a tangled web, those tractor companies are.
Tim,
After reading the last few posts I've been trying to refresh my memory. Did Universal get its stake during the conditional bankruptcy of the '80s? Long prior to that had been "Inc." Was the "Inc." a publicly traded company or family owned corporation. At about that time I remember Bill Long saying he did not understand how Long, N.C. Inc could be put in bankruptcy with 5 million in the bank. Can a family corporation be brought into bankruptcy just the same way as public traded corporations?
At first I thought I knew of you from a list we were faxed back in September but when another poster mentioned you had inside information from Montana I conclude you may be somone else. I won't say more because I don't want to damage your privacy on the net. However, if you did come in the Long side, can you remember the Long 10.5 foot satelite dish, the Long wood stove, the Long grain combine and the Memphis branch. Bill Long used to try to get products for dealers to sell off season. You had to admire that. By the way I haven't seen the Montana Universal tractors but one farmer told me they had the exhaust out the left side of the hood which I thought would be more like the Long 610 rather than the Long 680.
After reading the last few posts I've been trying to refresh my memory. Did Universal get its stake during the conditional bankruptcy of the '80s? Long prior to that had been "Inc." Was the "Inc." a publicly traded company or family owned corporation. At about that time I remember Bill Long saying he did not understand how Long, N.C. Inc could be put in bankruptcy with 5 million in the bank. Can a family corporation be brought into bankruptcy just the same way as public traded corporations?
At first I thought I knew of you from a list we were faxed back in September but when another poster mentioned you had inside information from Montana I conclude you may be somone else. I won't say more because I don't want to damage your privacy on the net. However, if you did come in the Long side, can you remember the Long 10.5 foot satelite dish, the Long wood stove, the Long grain combine and the Memphis branch. Bill Long used to try to get products for dealers to sell off season. You had to admire that. By the way I haven't seen the Montana Universal tractors but one farmer told me they had the exhaust out the left side of the hood which I thought would be more like the Long 610 rather than the Long 680.
I just received a copy of Ag Equipment Intelligence in today's mail. One paragraph states "Naeda Seeks Solution. In it's March 12, newsletter Naeda reports that many FARMTRAC dealers have contacted the organization with concerns about the future of their wholegoods, parts and service business with FARMTRAC."
"According to NAEDA legal counsel Jack Selzer has researched options and communicated with many dealers individually. In addtition NAEDA have contacted all known FARMTRAC dealers with a list of options to consider as well as a contact point. The association is trying to determine the interest of these dealers in contributing to a legal defense fund to address this specific issue in court. The newsletter also reports that NAEDA is cooperating with two FARMTRAC dealers who have established a "parts depot and exchange center". Details of these efforts were not immediately available from the association."
I pass this on for your information. I'm not sure what all it means.
"According to NAEDA legal counsel Jack Selzer has researched options and communicated with many dealers individually. In addtition NAEDA have contacted all known FARMTRAC dealers with a list of options to consider as well as a contact point. The association is trying to determine the interest of these dealers in contributing to a legal defense fund to address this specific issue in court. The newsletter also reports that NAEDA is cooperating with two FARMTRAC dealers who have established a "parts depot and exchange center". Details of these efforts were not immediately available from the association."
I pass this on for your information. I'm not sure what all it means.
Tim just wondered if you may have any info concerning a 5yr contract signed in2005 by Escorts and Same-duetz fahr. the agreement was for Escorts to distribute the duetz fahr in north america through Farmtrac of north america under the Farmtrac name.acording to a press release at that time ,Farmtrac's CEO Vijay Raina' who now heads up duetz Fahr in north america ,stated that tractors in the28-150hp rangewould be involved in this agreement.if the duetz fahr was distributed by Farmtrac in north america and the contract runs for 2 more years,wouldn't it seem that Vijay Raina in realty still is employed by Farmtrac.if that is the case then it appears that Farmtrac is still a viable company albeit under the Duetz Farh label.love to have your take on this THANKS
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another point that needs to be considered by the Farmtrac dealers is, who made money out of this whole mess and who stands to lose. Now follow the money trail and lets see where leads. first, farmtrac ,utilizing an agreement between Escorts LLC. of India and LS Cable of Korea,orders a shipment of tractors. prior to arrival of the shipment in tarboro ,Farmtrac management,acting on orders from Escorts LLC. in India,instructs all the territoty managers to pressure all the dealers to increase their inventory,by offering unlimited terms and in some ,if not all cases ,freight free.now upon arrival of the shipment in tarboro,the tractors are distributed to the dealers.at this time the invoices are submited by Farmtrac to Textron for floorplan payment.textron then remits a check to Farmtrac .So,lets see at this stage who has got paid and who is still owed money.well, LS Cable filed a suit against Farmtrac ,because they didn't get paid.Textron filed a claim in court against Framtrac ,because they are owed money,and the the 300+ Farmtrac dealers across the nation are left holding,what has been estimated at 50 million bucks worth of tractors ,they are unable to sell,and are expected to pay Textron for.they surely did not get any money. the only one sitting pretty seems to be Escorts LLC. of india who,owns Farmtrac. it appears the indians have screwed the americans and the Koreans royally.especially the Farmtrac dealers. I have been told by some dealers who handle both the montana and the farmtrac lines,that Farmtrac charges it's dealers as much as 3000 dollars more than Montana charges it's dealers for the same tractors.so the ripoff has been going on for quite awhile.I would not touch the Duetz Fahr line at all,knowing that Escorts is involved in any way.this is the way I see it.------Taxpayer
