CoBank, a cooperative bank serving agricultural and rural energy sectors, sought emergency appointment of a limited receiver over Stricks, LLC and Stricks AG, LLC, both Montana limited liability companies involved in agricultural operations. The bank alleged that Above Food Ingredients Corp. and related entities failed to provide required capital contributions and inventory contributions to the defendants, creating financial distress that threatened CoBank's secured interests in the companies.
Judge Brimmer granted the motion with defendants' consent, noting that the receivership would be limited to pursuing 'Above Food Claims' and helping renew the defendants' grain licenses. 'The Receiver shall have all of the powers and duties of a limited receiver under federal law and reasonably necessary to exercise control over the Receivership Property,' Brimmer wrote, while allowing defendants' current management to continue day-to-day business operations. The court appointed Creative Planning Business Alliance, LLC as receiver, with Alex G. Smith serving as primary agent.
The case stems from CoBank's secured lending relationship with the Montana agricultural companies, which apparently became financially distressed due to Above Food's alleged breach of contribution obligations. CoBank moved for emergency relief to protect its collateral interests and ensure the defendants could maintain their grain licenses, which require bonding and insurance that the companies could not secure without assistance.
The receivership establishes a claims process if funds become available for creditor distributions beyond CoBank, with the receiver required to file monthly reports and a final accounting. The order gives the receiver broad authority to pursue litigation against Above Food entities and potentially sell the receivership business, while protecting CoBank's secured position through any advances made to fund operations.