Express Grain Terminals has received a subpoena to produce documents in the ongoing lawsuit between farmers and the bankrupt company’s largest creditor, according to court documents.
The subpoena comes from three farming operations: Island Farms LLC, Porter Planting Co. and Wyatt Farm Partnership. They have been embroiled in a lawsuit against UMB Bank, Express Grain’s primary creditor, since November.
The farmers have alleged in their federal lawsuit that the bank, which loaned Express Grain $70 million over a period of time, knew of the company’s declining financial condition but kept the company temporarily afloat in order to seize grain delivered to it for the 2021 harvest season as collateral.
The bank has denied the allegations and asked for the lawsuit to be dismissed. The court heard arguments two months ago but has yet to rule on the bank’s request.
In the meantime, both sides of the lawsuit have been issuing subpoenas for documents.
The subpoena for Express Grain asks for all documents related to its operations and financial condition since January 2015, including any communications with UMB Bank and Horne LLP, a Ridgeland-based auditing firm.
It also asks for communications with the two other large Express Grain creditors, StoneX Commodity Solutions and Macquarie Commodities. Documents and information related to software packages that Express Grain used are also part of the demand.
Since Express Grain filed for bankruptcy last September, the original hope was for a restructuring of the company, but little of the company remains as nearly all of its assets have been sold off.
Its two grain warehouses in Sidon and Minter City are now owned by Delta Grain Co., a subsidiary of Chicago-based FSB Companies. The oil mill was in the process of being sold to Denver, Colorado-based Thoroughbred Agrifuel Holdings, but there have been no plans published as to what will be done with the mill.
A hearing is scheduled for Tuesday to address a group of farmers who have not made a declaration to the bankruptcy court about whether they intend to continue their fight in the bankruptcy court for their monetary claims.
Express Grain has been granted extra time to submit a reorganization plan that will detail what direction the company will take next.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
