HUDSON, Mich. (AP) — A mortgage company has taken control of Vreba-Hoff dairies in southeastern Michigan and northwestern Ohio following negotiations to avoid foreclosure on a $55 million loan.

Vreba-Hoff Dairy spokeswoman Cecilia Conway tells The Daily Telegram of Adrian that Delaware-based Rabo Agrifinance has been running operations since Nov. 12, when Vreba-Hoff transferred ownership to one of its entities, Southern Michigan Dairies LLC.

Rabo Agrifinance last week filed a foreclosure complaint in federal court in Grand Rapids asking that a receiver be appointed to take over three dairies with thousands of cows near Hudson and three others in Fulton County, Ohio.

Rabo Agrifinance spokeswoman Heather McElrath declined comment.

Conway blamed the dairy's financial failure on low milk prices and high feed costs. She said the takeover is not the end of the company.

Copyright 2010 The Associated Press.