A financially troubled grain elevator in northeastern South Dakota will have its annual license renewed on July 1 despite owing a handful of producers approximately $1.2 million, reports KELO.
The South 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 commission suspended the elevator’s grain-buying license on February 15 because of weak finances.
The grain elevator's lender has agreed to a forbearance agreement until 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.
