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Michigan is out of $2.3 mln as Cherry Growers Inc. folds

The state of Michigan is out nearly $2.3 million after it ran out of options to recoup a performance-based grant from a Northern Michigan company that folded. Cherry Growers, Inc. in Grawn, Grand Traverse County, filed for Chapter 11 bankruptcy before it paid back any of a $2.5 million performance-based state grant it received in 2012.

The loss became official last Tuesday, when the Michigan Strategic Fund Board voted to write-off $2,288,363 that it will not recover, according to state officials.

Circumstances that led to the bankruptcy include failed apple and cherry crops in 2012 coupled with a large capital investment that same year; the $2.5 million MSF grant was part of the capital investment funding, according to an MSF document explaining the write-off.

Cherry Growers filed for bankruptcy in 2017, the document said. MSF, part of the Michigan Economic Development Corporation, eventually collected $211,637.20 on its $2.5 million claim in the bankruptcy proceedings.

Source: mlive.com


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