Death of a family farm chronicled

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Court records provide details on how the Brothers family farm, a 400-plus acre tract that was sold at auction last month, went under. It marked the end of a two-generation farm, although the buyer says he will keep farming the land.

The records don't answer all the questions, but you can piece together some of the story, as reporter Rick Lee did recently in this story and timeline, sourced through court records:

 The property bordering Bowers Bridge Road and the Conewago Creek was auctioned off for $1,704,300. A former dairy farm, it had not been used for agriculture since 1991.
 
   Edward Brothers Jr., who was deeded the land by his father, "Big" Edward Brothers Sr., in 1982 for $1, had operated a trucking company since 1962 when he was 18 years old.

    The trucking company, which began on the farm and moved to a Willows Springs Industrial Park terminal in 1998, had an apparently successful run.

    But for reasons not alluded to in court documents -- financial over-extension, a downturn in economics, ever-increasing operating costs -- the company began to founder around 2000.

    In 2003, Brothers Trucking Co. filed for Chapter 11 protection. More than 100 creditors filed claims against the company for almost $15.5 million.
  
And within the following seven weeks, three creditors filed civil suits against the company seeking $1.1 million.
 
  Brothers and his wife and business partner, Theresa I. Brothers, took out a $1.75 million mortgage on the Bowers Bridge Road property in July 2006.

    Tax liens for more than $1 million were filed against the company by state and federal governments.

    Brothers Trucking Co. was forced into Chapter 7 in November 2007. That same month, the mortgage holder foreclosed on the farm, claiming more than $2 million in unpaid principal balance, interest, late charges and attorneys fees.

    At a sheriff's sale in December, the mortgage holder -- Jadda Secured Senior Mortgage Fund -- paid sheriff's costs of $6,395 and took possession of the property leading to the Aug. 20 auction.
 
  Edward Brothers could not be reached for comment. Theresa Brothers died in January 2007.
 
 Here is a partial timeline of the history and financial activities of Brothers and Brothers Trucking Company.


TIMELINE
   
   September 1956 - Edward H. Brothers Sr. and his wife, Beatrice A. Brothers, buy part of a larger farm at 1940 and 1670 Bowers Bridge Road in Conewago Township. The Brothers operate a dairy farm.
  
    1962 - Edward H. Brothers Jr. starts a carrier business - Brothers Trucking Co. Inc. -- on the family farm.
  
    Feb. 1, 1982
- The family farm is deeded to Brothers Jr. and his wife, Theresa I. Brothers, by his parents for $1.
   
    July 1998 - Brothers Jr. buys a trucking terminal in Willows Springs Industrial Park
  
    Sept. 4, 2003 - Brothers Trucking Co. files for Chapter 11. More than 100 creditors file claims totaling $15,451,775.
  
    Sept. 23, 2003 - PACCAR Financial Corporation files suit against Brothers Jr. seeking $581,179. The claim is voluntarily dismissed by the plaintiff on Feb. 20, 2004.
  
    Oct. 23, 2003 - US Bancorp Equipment Finance Inc. files suit against the Brothers and the company seeking $389,840. The claim is voluntarily dismissed by the plaintiff on Aug. 31, 2006.
  
     Oct. 24, 2003 - General Electric Capital Corporation files suit against Brothers Jr. and the company seeking $152,273. The claim is voluntarily dismissed by the plaintiff on May 27, 2004. A default judgment for $132,594 is filed on April 12, 2005.
   
    June 18, 2004
- A commonwealth tax lien is filed against the company for $43,213.
    
   Jan. 10, 2006
- The U.S. Bankruptcy Court confirms the company's reorganization plan.
  
    July 27, 2006 - Edward and Theresa Brothers sign a promissory note against the farm for $1,750,000 with Jadda Secured Senior Mortgage Fund.
  
    Oct. 20, 2006
- A federal tax lien is filed against the company for $584,138.
  
    Nov. 9, 2006 - Edward and Theresa Brothers sign a promissory note for $450,000 with Springville Investors.
  
    Jan. 7, 2007 - Theresa I. Brothers dies at age 77.
  
    Jan. 29, 2007 - Brothers borrows an additional $225,000 against the Jadda mortgage.
  
    March 8, 2007 - The Central Penn Business Journal reports Brothers Trucking Co. Inc. 2006 revenue at $12 million in a story about the federal tax lien.
  
    June 2007 - The company's Chapter 11 financial report shows a sharp drop in income and failure to submit payroll taxes for two months. The tax liability is approximately $30,000.
  
    Aug. 1, 2007 - A federal tax lien is filed against the company for $787,821.
  
    Oct. 4, 2007 - The U.S. trustee appointed to the Chapter 11 case requests the bankruptcy court to convert the case to Chapter 7.
   
    Nov. 1, 2007 - The court orders the conversion to Chapter 7.
  
    Nov. 28, 2007 - Jadda Secured Senior Mortgage Fund files for mortgage foreclosure on the Bowers Bridge Road property, seeking $2,061,719.
  
    Feb. 19, 2008 - The final report of the bankruptcy trustee is filed.
  
    Feb. 28, 2008 - The Chapter 7 case is closed by the court.
  
    July 31, 2008 - A stipulated judgment against Brothers in favor of Jadda Secured Senior Mortgage Fund for $2,061,719 is entered in York County court.
  
    Sept. 8, 2008 -Jadda Secured Senior Mortgage Fund refiles for foreclosure on the Bowers Bridge Road property, seeking $2,385,202.
  
    Dec. 8, 2008 - Jadda pays sheriff's costs of $6,395 at sheriff's sale and takes possession of the property. A representative sets the upset price at $2,432,804. There are no takers.
  
     Aug. 20, 2009 - The property is put up for public auction and sold to Rexroth Farms for $1,704,300.

2 Comments

Hopefully, that large sign along I83 for Brothers Trucking will soon disappear.

The incident wouldn't had happen if only the family paid the taxes for their farm. Rexroth Farms now has the right to use the property to what they think is best. Still, it benefits other people if the new owners hire employees that would help them take care of their plants.

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This page contains a single entry by Scott Blanchard published on September 2, 2009 4:07 PM.

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