The examiner in Express Grain Terminals President John Coleman’s bankruptcy case has objected to Coleman’s request to convert the case from Chapter 11 to Chapter 7, according to a document submitted in federal court Tuesday.
Coleman made the request to convert last month. But Albert Altro, the court-appointed examiner, said in his objection that Coleman has not explained how conversion would benefit the state or creditors and has not addressed why the investigation of an examiner is no longer necessary.
In a Chapter 7 filing, the debtor’s assets are sold off to pay creditors. In a Chapter 11 filing, the debtor can negotiate with creditors to reduce debt without liquidating assets.
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Altro argues that Coleman waived his arguments to convert when applying for dismissal of the case entirely in November. In an order filed in January, Judge Selene Maddox denied that request, citing Coleman’s “bad faith conduct” and failure to participate in court proceedings.
Federal and state law enforcement raided Coleman’s home on Robert E. Lee Drive and Express Grain’s offices on River Road Extended, as well as an unknown third location, as part of an investigation into the company.
Express Grain, which filed for bankruptcy last September, owes more than $156 million.
Its facilities were sold Friday, though to whom is still unclear. The company’s largest creditor, UMB Bank of Kansas City, Missouri, was reported to be the highest bidder by The Taxpayers Channel, but it is unknown whether the bid was approved.
Eric Johnson, an attorney representing the bank, said Tuesday in an email that UMB does not comment on pending issues in bankruptcy.
The company is still progressing through its bankruptcy, with a hearing scheduled for March 31 to determine ownership of grain and grain proceeds generated over the last several months.
In documents filed with the court, Coleman and Express Grain have been accused of fraud by numerous parties, including the Mississippi Department of Agriculture and Commerce, UMB Bank and farmers.
-Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
