St. Thomas farmer McMartin discloses financials
FARGO — Farmer Ron G. McMartin Jr. of St. Thomas, N.D., has provided details of his financial situation as part of a Chapter 7 liquidation bankruptcy.
An initial meeting of creditors in the individual bankruptcy has been rescheduled for 9 a.m. Oct. 18 at Norm Mark Reporting, 300 NP Ave., Suite 201, in Fargo.
McMartin ran McM Inc., which in 2015 had 50,000 acres of land, mostly in eastern North Dakota and northwest Minnesota. McM Inc. in February filed a separate but related Chapter 7 bankruptcy. McM Inc. listed $50 million in liabilities and but $10.2 million in assets.
Sara Diaz of Grand Forks represents McMartin in the individual bankruptcy. He lists $52.2 million in unsecured claims and property assets of about $1.5 million.
Between the two cases there are assets of more than $11 million against debts of more than $50 million, says Erik Ahlgren of Fergus Falls, Minn., the court-appointed trustee for both cases.
In the individual Chapter 7, filed Sept. 11, McMartin lists himself as unemployed and living in St. Thomas. He describes that he has about $4,583.33 in income averaged by month, without describing a source. He says he has monthly expense obligations of $26,960 — a deficit of $22,376.67 per month.
About $23,000 of McMartin's monthly obligations go to his ex-wife Gail L. Martin, Detroit Lakes, Minn., in a property division settlement from a 2010 divorce. He also owes $88,480 in a real estate mortgage securing Gail's home.
The bankruptcy figures indicate the change in McMartin's income as the farm economy declined on the McM Inc. farm for which he had provided personal guarantees for loans.
In the documents, McMartin said that in 2017, up to the bankruptcy filing on Sept. 11, he had an income of $25,800 in business income, and separate income of $11,548 and $23,000 in income tax refunds — a total of about $60,000. Also in 2017, he sold $250,000 in Ramsey Financial Corp. stock.
In 2016, to compare, he said he'd made $244,000 in wages, $59,000 from operating another business, $60,650 in gains from sales of property and $31,000 in real estate rental — nearly $400,000.
In 2015, McMartin said his total income was about $658,207.
McMartin claims the equity in a vehicle as exempt from creditors. He drives a 2017 Ford F-150 SuperCrew XLT pickup with premium sound and navigation, worth about $50,000. National Bank of Columbus, Ohio, has a $47,991 claim against it. He owes $1,100 a month in payments.
McMartin lists a total of $83,876 in credit card debt to three different accounts.
He lists more than $43 million in guaranteed business debt to BMO Harris Bank of Milwaukee that he describes as "unliquidated," meaning that a final amount hasn't been determined. The forms don't say whether he disputes the guarantee.
He also lists more than $60,000 in debt to Deere & Co. and Deere Credit Inc. He owes $11,776 to Ford Motor Credit on an automobile deficiency in a guaranteed debt of McM Inc.
McMartin on Oct. 17 sold his home in Grand Forks for about $418,900. He moved about $2,500 in household goods to a local warehouse. The bankruptcy doesn't include a listing for a homestead exemption.
McMartin said he had a 28 percent interest in RGMC Properties LLC, an apartment building at 5932 53rd Ave. S. in Fargo. He lists the asset at $420,000 on $1.5 million collateral value. He said a tenant has offered to purchase the building for $1.1 million. Bremer Bank has a claim of $591,382 against the secured debt.
According to the documents, on June 11, 2016, McMartin said he "assigned" non-voting membership rights in the apartment building to daughters Laura R. Hagemeister and Rachel McMartin, both of Fargo, with estimated value of $200,000 each. Details of that transaction aren't clear from the record.
McMartin also lists $961,592 in CHS patronage dividends, but says CHS Inc. has a $665,694 claim against that.
He owns a $500,000 life insurance policy on his father, and a $2 million policy on Bonita McMartin, who is married to his father. He has a $500,000 policy on his brother, Larry McMartin. Separately, he was ordered to take out a $3 million life insurance policy on himself for his ex-wife, Gail McMartin, as beneficiary. McMartin also has life insurance policies of a total of $6 million in face value with Hagemeister and Rachel McMartin as beneficiaries.