MASSIVE STOCK LIQUIDATION

:shock:

Such a sad thing. I feel for all involved. Sad that the court is making them sell all those in one lump sum. Evidently they haven't seen the horse market anytime recently. Whoever buys that lot will have to have major cash on hand to just MOVE them! Interested to see where they go. They had a production sale scheduled for October 15 where they were going to auction them one at a time instead of in a lump auction. Would have made more money and paid off more debts.

its not just money , if they were all mares it wouldnt be that hard to accommodate them but what would you do with all those stallions ? major headache

I noticed that at the most well known stallions are listed in the sales list.

This is SHOCKING!!!

Opps I meant aren't list in the sales list...aren't... big difference there /blush

They're all 3 and under....more than 200 horses? Interesting. Who on earth has resources to get the 3's getting started, gelded, etc? Woo.

Would the QHA not help?
That is one of the reasons they are there, after all. They have encouraged people to over breed the last few years and this is one of the results.
Time for them to get a return on all the money they have invested in registrations, I think?

Wow. I hope they manage to find homes for most if not all, would be a shame for all those young horses with all those great blood lines to get eaten. I'm sure there are some real treasures there. Shame they are trying to sell it as a lot that makes no sense....take that back, it does I suppose. Like if they allowed separate bids then people would only take the really great ones and leave the mediocre behind, this way in order to get the goods you have to get the bads too. I'd at least break them into smaller groups or something though, someone's be more apt to buy a lot of 5 colts than 300 random assorteds.

:shock: OMG - and to think of all those weanlings and young stock sitting there going to waste while the government "determines their fate" :BH ....It is heartbreaking. :cry:

Edit to add:
Okay, instead of crying, I sent off a few emails to people with the money and clout to maybe actually do something about this situation...let's hope they can help. I know they have the funding and resources to transport, care for and train the horses...the question would be if they can get it all pulled together in time.

[quote="equine_woman"]Such a sad thing. I feel for all involved. Sad that the court is making them sell all those in one lump sum. Evidently they haven't seen the horse market anytime recently. Whoever buys that lot will have to have major cash on hand to just MOVE them! Interested to see where they go. They had a production sale scheduled for October 15 where they were going to auction them one at a time instead of in a lump auction. Would have made more money and paid off more debts.[/quote]

It's probably because of the horse market that the sale is an "all-in-one" package. The creditors probably need to realise cash as fast as they can to avoid bankruptcy themselves.

Diane

Why would they do it this way though instead of auctioning them off individually? That is probably what is going to happen anyway. Someone is going to buy the lot and then turn right around and re-auction them as individuals. And why aren't the big stallions for sale? If it is bankruptcy wouldn't those horses be the most likely to create revenue? Something just doesn't seem right...

Babcock's site gives NO indication this is going on. It makes me wonder if they're keeping their stallions somehow.

There may be several possible reasons for the stallions to not be part of the auction...1) they are already under contract to someone else; 2) there were not part of the "collateral" and therefore cannot be part of the liquidation (this happens usually with real property or vehicles, but livestock is a possibility); 3) they were used as collateral on a 'non-inclusive' loan; or 4) used as collateral in a legal proceeding that is being heard in another district. These are not all the possible reason, but just the ones I remember from my bankruptcy classes (didn't do much in that area of law)...

Bankruptcy Court isn't run by horse people...auctions of these sorts tend to be, as CK pointed out, of real or personal property, and are usually sold off in bulk lots, rather than individually. It could also be that a 'liquidator's sale' has already happened and not garnered the interest necessary. As for the info not being on the website, as CK also pointed out, it could be just one part of the organisation that's gone under (i.e., they've broken the stallions into one 'company', the land ownership in another, mares in a third, etc.) and you'd not want to scare people that the whole thing is going under when it's not.

Diane

Thanks to both of you I knew someone would jump in there and help clear things up for me.

First of all, let me say that I know absolutely nothing about these people or these horses. NOTHING I am saying here reflects any personal knowledge of this particular situation.

Maybe I'm cynical, but perhaps they are all in one lump in order to prevent people from buying them. Perhaps a related family member, close friend, or business associate plans to buy the group for a fraction of their value by buying them all at once. Like I said, I know absolutely nothing about this particular situation, but I have known of such things happening before. All planned out ahead of time and organized so that the creditors get ripped and someone else makes a billion (figuratively).

Could easily be that as well. But bulk lot selling [i][b]is[/i][/b] normal for bankruptcy court.

They were given a year to get their finances straight and did not do it so the judge ordered the sale (they did schedual a liquidation sale but waited to late to plan it for the judges liking). At the last time I checked he was the only bidder on his own horses so if he gets them back he stiffed all those he owed money too and got to get his horses back for a fraction of their cost. A couple of the stallions have been added to the list and a few mares have been removed as their ownership is being questioned. There is no way these horses would end up at a meat market as everyone I know would be there to buy them before any kill buyer could, me included. These horses could have been sold at 2000 to 10000 and 99% would have sold but I think the buy back idea kept them from selling.

So he is just going to get his horses back? Even after he didn't have the money to take care of them in the first place? That certainly seems the most logical route...or not. Where is he coming up with the money in the first place? Why doesn't he use that money to pay back all his debts?

Wasn't necessarily that he didn't have the money to take care of the horses, rather that the horses were very likely collateral for loans and/or considered seizable assets for unsecured loans. So yeah, his creditors get stiffed, he gets his horses back, and gets to start with a clean slate, financially.

Diane

I am somewhat surprised that the judge allowed this - he does have the right to reject the bid and order a non-associate requirement (no friends, family or associate can bid).

What is not surprising is that this is how the automakers, airlines, oil and coal companys (just to name a FEW) have managed to stay in business as long as they have...many over and over again (no including "stimulus monies). There is one car dealer here that has filed bankruptcy 9 times and still has his car lot (the banks, automakers and customers are the only ones hurt). There is a limit to the number of times you can file bankruptcy in a lifetime - however, that applies "per filing class" and as there are as many different types of bankruptcy as there are lawyers to handle the case, you can always find away around the restrictions.

Hopefully someone else will bid on them people have till the 15th I think

Here is a suggestion (not mine) we could all band together, pitch in a few dollars each and buy them...we will then haul them to a BLM management area and turn them out with the mustangs to run wild out on the plains...(talk about a drastic upgrade to the "wild" horse bloodlines...before you guys all jump me, this was my granddaughter's suggestion - she's only 5 1/2).

Aw I like quite a few of the mustangs, but not such a fan of a lot of QH's, so not sure I'd see it as an upgrade LOL!

Like I said before, I don't know any of the people in this situation, but from what has been posted here, it seems my basic scenario was right.

I think it is despicable that our politicians and judges will allow a situation where someone can default on a debt and buy their own collateral back at a fraction of what they owe and clear their debt. If they have the money to buy them, they need to pay that money on what they owe AND have the collateral seized and sold.

In the ancient world, this kind of people became slaves. Where is the happy medium? :BH :hammer

I know there are always two sides to every story, so I'm not talking about individuals, I'm talking about the situation.

[quote="critterkeeper"]Here is a suggestion (not mine) we could all band together, pitch in a few dollars each and buy them...we will then haul them to a BLM management area and turn them out with the mustangs to run wild out on the plains...(talk about a drastic upgrade to the "wild" horse bloodlines...before you guys all jump me, this was my granddaughter's suggestion - she's only 5 1/2).[/quote]

Yeah except as soon as that happens the BLM will round them up and send them to auction as estray animals.

Songcatcher..... I think you nailed it right on the head. Just some kind of deal to basically get his horses back and get out of paying a debt.... looks like a "friend" or business associate of his bought the horses.

Is it possible to find out what was paid for them? I'm just curious.

I think I saw somewhere, what was paid for them.... I'll see if I can find it....

OK, found it, the winning bid was $325,000. I found that on allaboutcutting.com, the latest news on that site.