News - Local
6 Colorado dairies file for bankruptcy this year
Posted: Sep 22, 2009 8:58 AM by Associated Press
Six Colorado dairies have filed for bankruptcy protection this year amid banking problems and low milk prices.
Four of the banks had loans from Greeley-based New Frontier Bank, which collapsed in April. That raised the prospect that the dairies and other borrowers would be forced out of business if investors who took over the bank's loans demanded immediate repayment.
John Stulp, the state agriculture commissioner, says he learned that investors offered to settle the loans with two of the dairies for just 50 percent of the original debt. Stulp says he doesn't know what will happen with those deals.
Bob Winter, a member of the Colorado Farm Bureau, says he believes more Colorado dairies are preparing to file for bankruptcy protection. He declined to identify them.
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