For More Information Contact:
Dana Brueck 608/266-1221
MADISON — Attorney General J.B. Van Hollen has announced the Wisconsin Department of Transportation has been paid its claims, in full, on two outstanding Freight Railroad Infrastructure Improvement Program (“FRIIP”) loans.
The payment, on August 31, 2011, was in the amount of $2,400,642.32.
In 2004 and 2008, the State Department of Transportation made two FRIIP loans to Olsen Brothers Enterprises to improve railroad infrastructure at grain elevator/storage facilities in Oshkosh and Boscobel, Wisconsin. Both loans eventually went into default.
The principals of the borrowing company filed joint Chapter 11 bankruptcies in December, 2010. These two loan balances were part of the claims in those Chapter 11 bankruptcies.
The Attorney General’s Office worked with other creditors to assist in fashioning a plan which would pay secured creditors, save the jobs of grain elevator/storage employees and marshal as many assets as possible for the unsecured creditors.
As part of the Chapter 11 Plan, approved by Court Order on August 30, 2011, Archer-Daniels-Midland Company (“ADM”) purchased several major assets from the bankruptcies estates. That sale, which closed on August 31, 2011, also involved ADM retaining the employees who worked at the related facilities.
On August 31, 2011, the State Department of Transportation was paid $2,400,642.32 to fully satisfy its two outstanding loans.
Assistant Attorney General Maria S. Lazar represented the Department of Transportation in the Bankruptcies.