On June 30, 2004 at 0610 central daylight time, a Beech model 200, N432FA, received substantial damage during a precautionary landing after a loss of engine power during initial climb from runway 24 (7,699 feet by 150 feet), at the Austin Straubel International Airport (GRB), Green Bay, Wisconsin. The 14 CFR part 135 air-taxi flight was operating on an instrument rules flight plan in visual meteorological conditions. The airline transport pilot and his 7 passengers were not injured. The flight was originating at the time of the accident and was bound for the Gerald R. Ford International Airport (GRR), Grand Rapids, Michigan. The pilot submitted a written report of the accident. He stated that all indications during the preflight, engine start, and run-up were normal and were conducted in accordance with the checklists. He stated that during the takeoff he applied power to both engines and that the engine instrument indications were normal. He said that at 1,600 pounds of torque per side, the autofeather function annunciator lights came on indicating that the autofeather function was armed. He stated that he accelerated to 95 knots, rotated, and when the airplane had achieved a positive rate of climb at 110 knots, he selected gear up. He stated that as the landing gear was retracting, the right engine "quit". He stated that he elected to land the airplane on the remaining runway and selected gear down. The pilot stated, "I then flew the aircraft maintaining directional control and landed on runway 24 however due to the short time between selecting gear down and landing, the landing gear had not extended and the aircraft landed gear up." The airplane came to rest adjacent to the east edge of the turnoff for taxiway M. Measurements from a scale airport diagram show that approximately 2,000 feet of the 7,699 foot runway remained. Examination of the both propellers revealed similar bending of the propeller blades of both engines. Examination of the right propeller revealed that it was not in the feather position. The pilot reported that the autofeather system did not activate. The landing gear doors were in the closed position. An on-scene examination of the engine revealed no anomalies. The rotating components of the engine were free and could be rotated by hand. The fuel pump and fuel control unit (FCU) were retained for further examination. The tests of the FCU and fuel pump revealed no discrepencies that would have precluded normal operation.