Express Grain Terminals LLC paid more than $57 million to creditors in May, according to financial reports filed in bankruptcy court.
The news was first reported by The Taxpayers Channel. Express Grain’s financial reports for April and May were filed Wednesday and are a requirement of its ongoing bankruptcy.
The $57 million was generated as Express Grain remained in operation for several months following its bankruptcy. The funds were kept in segregated bank accounts as two sides competed over who had the strongest claim to the money.
Farmers represented one side, who argued in court that they had been deceived by Express Grain and never received payment for the grain they delivered to the company.
On the other side were three large companies — UMB Bank, StoneX Commodity Solutions and Macquarie Commodities — who argued Express Grain sold the grain to them in exchange for financing.
The dispute dragged on through the company’s bankruptcy until a settlement was negotiated this summer.
Farmers who chose to sign on to the settlement got a piece of what Express Grain has paid out — around $8.5 million — but farmers in total were owed an estimated $54 million.
StoneX got the largest payment — more than $30 million — followed by UMB Bank at $10.4 million and Macquarie at $8.1 million.
UMB Bank was Express Grain’s largest creditor, being owed more than $70 million.
The bank also was able to lay claim to the company’s Leflore County properties, though it later sold off its purchase rights.
Express Grain has submitted a disclosure statement outlining how it plans to close its bankruptcy proceedings.
A hearing to consider the proposal was scheduled for Thursday, but Express Grain’s attorney, Craig Geno, submitted a request to delay the hearing so the company could submit an amended disclosure statement.
The delay was approved by the court. The new date to consider the disclosure statement is pending submission of the amended document.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
