Afinancially troubled grain elevatorin northeastern South Dakota will have its annual license renewed on July 1 despite owing a handful of producers approximately $1.2 million, reportsKELO.
TheSouth Dakota Public Utilities Commission(PUC) agreed Wednesday to grant a state grain-warehouse license and a state Class A grain-buyer license to Roslyn Elevator for 2023, on the condition the elevator won’t engage in any more voluntary-credit sales or delayed-price contracts.
In recent months, the Roslyn Elevator has been operating under the supervision of the PUC as it tries to return to profitability.
The commissionsuspended the elevator’s grain-buying licenseon February 15 because ofweak finances.
The grain elevator's lender has agreed to aforbearance agreementuntil at least July 29 on the money the elevator owes and is willing to continue that arrangement if the elevator’s owners quickly follow suggestions from one of the financial advisors whose names the bank provided.
Without the renewed licensing, the business likely would have to be liquidated noted the PUC.
