The Public Service Commission is asking a district court that a Harvey based elevator be declared insolvent – and the PSC to be named trustee.
Earth Harvest Mills has been operating under the name Dakota Prairie Organic Flour Company. Commissioner Randy Christmann says the company has been in financial trouble for some time – and the PSC has had a number of meetings with the company to try to turn things around.
"However, it doesn't seem to be turning around," said Christmann. "Waiting further would probably increase the likelihood that bad things might happen."
Commission chairman Brian Kalk says there are ample chances for the owner to stop the insolvency.
"If he (the owner) develops a model, and has capital available to pay off creditors, perhaps he can go back to work," said Kalk. "This actually starts a process."
Christmann says what prompted the action now is that a creditor has come forward, demanding payment of a credit sale contract in the amount of $26,000. And he says the outstanding claims could amount to more than $3 million. Earth Harvest Mills has a $50,000 bond.