The sale of Express Grain Terminals LLC’s facilities to its largest creditor was approved Monday by court order.
UMB Bank of Kansas City, Missouri, made a successful bid for the bankrupt company’s facilities in Greenwood, Sidon and Minter City during a court-directed auction on Feb. 25.
The bank, which is owed more than $70 million by Express Grain, was the highest bidder with a proposal of $25 million. The bank used a credit bidding procedure, allowing it to bid using its secured debt.
News media were not allowed to observe the auction held at the federal courthouse in Aberdeen, but the court order provides details on how the bidding played out.
Prior to the auction, Express Grain received several qualified bids from companies looking to participate in the auction. Those included Caterpillar Financial Services Corp. of Nashville, Tennessee; Farmers Grain Terminal LLC of Greenville; and Tackett Fish Farms of Schlater.
Bidding was opened first for Express Grain’s individual facilities and then for a combination of locations.
For example, Farmers Grain submitted a bid of $15 million for the Sidon and Minter City locations.
UMB’s bid of $18 million for all three locations took precedence next.
Each time someone else made a bid, UMB would counter with a higher one until its winning bid of $25 million was deemed the highest offered. Included in the bid are payments of more than $142,000 to cover real estate and ad valorem taxes and $62,000 for the closing costs.
The order notes that any objections to the sale that have not been withdrawn, waived or settled are overruled on merit.
With Express Grain’s facilities now under UMB’s ownership, the next hurdle in the company’s bankruptcy proceedings is determining ownership of grain and grain proceeds. Attorneys announced during a hearing on Friday that a tentative settlement among the parties had been reached.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
