Express Grain Terminals LLC was approved on Tuesday to continue its wind-down operations by a federal bankruptcy court as the company sells off its remaining inventory.
The company has told Judge Selene Maddox that it needs to “finish shipping grain that remains on site, finish selling, and then delivering, finished product/inventory and collection of accounts receivables,” according to Maddox’s order.
The order also states that there will be no more crushing of soybeans.
The court order permits the use of funds to continue operations until June 3. But as has happened several times before, the court could extend that date again.
As with the winding down of the business, major activity on the court docket has wound down as well.
Earlier this month, Maddox approved a settlement that would determine the fate of nearly $57 million in bank accounts maintained by the company since it declared bankruptcy in September.
Farmers who chose to join in the settlement will get a piece of $9.2 million set aside for them.
The remaining $48 million would be split among Express Grain’s largest creditors: StoneX Commodity Solutions, Macquarie Commodities and UMB Bank.
There was also an option for farmers to continue their challenge for their rightful share in the bankruptcy proceedings. A date for those challenges has not been determined.
Another group of farmers was given the option of withdrawing its claims in the bankruptcy court and trying its luck in another forum.
These farmers included those involved in a lawsuit against UMB Bank, alleging that the bank knew of Express Grain’s declining financial condition and conspired to prop up the company to seize its grain as collateral. The bank has denied the charges and has requested to have the lawsuit dismissed.
Farmers in this category had asked that language be included in the settlement that would protect their claims in the lawsuit against UMB.
Maddox, however, rejected this proposal. She said that these farmers were involved in the settlement negotiations and no objections were made when the settlement was initially presented to the court for review.
Farmers have begun issuing subpoenas in their lawsuit against UMB. One, for example, has been issued to Horne LLP, a Ridgeland-based accounting firm.
Horne conducted the annual financial audits of Express Grain that were required to comply with license regulations from the Mississippi Department of Agriculture and Commerce.
Agriculture Commissioner Andy Gipson later determined that the company submitted a doctored audit to the department, and he revoked Express Grain’s warehouse licenses as a result.
There is no trial date set for the farmers’ lawsuit against UMB.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
