A federal office has filed an objection to the liquidation plans for Express Grain Terminals LLC.
Express Grain submitted its plan for liquidation last month. If it is approved by the bankruptcy court, the company will be able to pursue monetary claims and pay off its creditors with what money it has left.
However, the United States Trustee (UST), a federal office that oversees bankruptcies and reports possible instances of fraud, has filed an objection, as first reported by The Taxpayers Channel.
Express Grain has been going through bankruptcy for nearly a year, having filed on Sept. 29, 2021. It has sold off its property and is now being managed completely by CR3 Partners LLC, which was originally hired to turn the company around.
The UST objects to the proposal that Express Grain pay priority claims over a period of five years rather than at the time of confirmation. Express Grain has stated in its liquidation proposal that it probably does not have the cash to pay out all priority claims as it will first have to pay administrative claims, which include legal fees and fees to CR3 for management of the company.
After those two categories come a large number of creditors who are unlikely to receive any money for claims against Express Grain’s estate. The company owes in excess of $200 million to various parties.
The UST also objects that there is no backup for Heather Williams of CR3 Partners, Express Grain’s nomination for who will carry out the liquidation.
The UST claims that there is no provision for a new liquidating trustee if Williams cannot or will not carry out her duties.
A hearing to consider Express Grain’s bankruptcy proposal is scheduled for Oct. 6.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
