FarmTrac Troubles

[Tim C.]

Quote FARMTRAC BEGINS LIQUIDATING ASSETS TO REPAY DEBT

According to a report from Starks News Service on April 4, Tarboro, N.C.-based Farmtrac North America LLC, has begun the process of liquidating nearly 4,900 units of fully assembled farm tractors.

Quoting a "knowledgeable industry source," the news service reports that liquidation will be used to help repay debt of more than $13.0 million to Textron Financial Corp.

Farmtrac, which is in receivership, listed over 900 units of farm tractors with LewPack International Inc., an export import group that specializes in selling vehicle inventories worldwide.

The source disclosed to SNS Interactive Farmtrac plans to liquidate 2,800 units of farm tractors in inventory at U.S. dealer outlets. Another 1,200 units of fully assembled farm tractors remain in storage." End quote


I have seen this posted on several sites.

Trying to contact Starks for comment and fact checking. Numbers are off except for the LewPack deal. Which we all know is gone at this time. When the numbers are wrong it makes the rest of the story less creditable.

Remember how fluid this matter is today. April 4th is a lifetime ago in this matter.

Tim

 

[taxpayer]

NOTE: 2800 of these tractors are located at dealer outlets according to the story.THATS US.----Taxpayer

 

[Brentwood Power Equipment]

So, when are they picking up the tractors? We'll take our stickers off and have them ready on the loading dock.

 

[longtrman]

"Our Canadian friends really ought to take a serious look at Farmtrac now. As we have noted before you can use Same parts on the 7 series tractors, Montana parts on the 2 & 3 series, and Ford parts on the 5 series tractors. If you get the tractor cheap enough who cares about warranty. If the tractor is cheap enough it is worth the gamble--you may be one of the 90% who never need the warranty. So many of the tractors I've sold I have never had a warranty problem on them."



Hi.
I am a little surprised this hasn't come up before. Set up a shell company in Canada, bring the Farmtracs in, sell them as used with no warranty but probable parts support, and sell them at a good price. Might be advantagous for those dealers closer to the border as the shipping would be cheaper. Lot cheaper than putting in a container and paying all those shipping charges.

Who knows, might work out well for all. If I had the $, I would probably buy a bunch and try to move them up here.

Sorry bout all the Farmtrac problems and having been following this thread somewhat dumbfounded by what has gone on.
I wish everyone the best of luck and hope it works out well for all involved.

Tom

Tom

There have been brokers bringing the grey market tractors into the US through Canada for a long time. Maybe you could see how they do it. You could find a lot of dealers on this site who would sell you old inventory provided the proper protection was in place. I don't know if Canada charges import duties on tractors from the US. The US doesn't charge import duties on farm machines from Canada.

 

[Brentwood Power Equipment]

Hey there dealers. I work for a law firm (don't run away or turn off your computer) in Fayetteville, AR that is suing Montana Tractors. In doing some research between the MT connection to Beaver Creek and Farmtrac, I came across this site (so I'm one of the guests who have been reading for a few days!).

Anyway, I noticed that someone mentioned a few days ago that they are tired of people trying to connect MT to Beaver Creek holdings. Anyone willing to tell me what that's about? Don't worry - I won't use your name or anything...i'm just a lowly researcher trying to put together the pieces of a really bizarre and complicated puzzle and where better to do that than a forum of tractor dealers and owners who know the business inside and out.

I know that MT tried to buy shares of Beaver Creek (or Farmtrac?) but that aquisition was voted down by the board. But I also know that meetings took place in India back in March between Escorts Ltd. and MT.

Any info you have would be great....sometimes the word on the street is just as powerful as the concrete facts. I'm just trying to wrap my brain around the relationships that exist between these companies.

Thanks,
fayettevilleSLM

My brother (and business partner) is a lawyer specializing in banking and business law.But I dont go around bragging about it!

 

[case1570]

Remember Marrow said he did not know how he was going to handle inventory that the dealers said they never ordered, could it be that this is the inventory they are talking about. It would be amazing if they actually did something that was in our best interest for a change. Lets hope!!!

Case

 

[longtrman]

Remember Marrow said he did not know how he was going to handle inventory that the dealers said they never ordered, could it be that this is the inventory they are talking about. It would be amazing if they actually did something that was in our best interest for a change. Lets hope!!!

Case

Whoa Case, take it easy. Farmtrac knows if they are to buy back all the tractors that were never ordered then suddenly ever tractor on every dealer's lot would not have been ordered. Do you have tractors on your lot from a neighboring dealer who went out of business? Those may be "non-ordered but everything else someone at your dealership signed the freight company "packing list".

 

[case1570]

Thats the best part. When the last load of tractors came through we wrote on the delivery ticket "we did not order these tractors" I would love to elaborate but do not want to tip my hand in the event that this does go to court. Know one will find our signature anywhere in regards to these tractors. TM says he'll back me in court. Farmtrac TM's were told to move inventory, wether the dealer wanted it or not. I think they will testify to that in court. This can also be proved in the fact that Dealers floorplan amounts were upped without being asked for, or they were shipped more tractors then there floor plan accounts could cover.
Case

 

[redneckford]

been there and seen that happen in the ford tractor days The floor plan company is involved to their eye balls. Someone was making the payments on unauthorized orders and unauthorized increased floor plans. Follow the MONEY!!! it may just be a rouge??? floor plan agent!!!! Any resent retirements a textron???
SORRY had to add my 2 cents I was a ford dealer for many years and their TM's and credit company would do the same thing and then blame it on the dealer or his/her staff for the miscommunication of information.!!!!!
You got to stick together and get the word out to the general public. Look what the credit card companys are doing to the airlines no one seems to know where the money has gone. You can bet not in the dealers pocket.

 

[case1570]

At what point does the court find the floorplanners responsible. Secured creditors or not, they obviously new what was going on. They thought they had nothing to lose because the inventory was in the dealers hands. We wrote on delivery reports because our Kioti rep. said when he worked for Allis Chalmers in the late 70"s earlier 80's they did the same thing. Loaded up dealers to show sales to bolster numbers. Does anyone know how that ended. I thought they were bought out but what happened to all of the iron that was dumped on dealers. If we find out it may help our situation.
Case