A tentative settlement has been reached over ownership of the grain and grain proceeds currently in Express Grain Terminal’s possession.
Attorneys announced the deal during a Friday hearing just days before a trial was scheduled to begin April 18. That trial has been postponed, but the date has not been set.
Financial terms of the settlement were not disclosed.
Money generated by Express Grain’s operations over the last several months has been held in bank accounts awaiting the court’s determination.
“I am very surprised but very happy that the parties have gotten to where they are,” federal Judge Selene Maddox, who has presided over the bankruptcy since late September, said during Friday’s hearing. “You have really pulled a miraculous feat to this point. I don’t think any of us ever thought that we would be sitting here this afternoon in a status hearing discussing a potential settlement.”
A native of the Mississippi Delta, Maddox said she understands the impact Express Grain’s bankruptcy has had on the community.
Farmers and the production lenders that funded their crops have argued for months that they own the grain processed by the company and the money earned as a result. More than 200 farmers are owed an estimated $46 million or more.
In opposition have been UMB Bank, StoneX Commodity Solutions and Macquarie Commodities, three large companies that have argued Express Grain sold grain to them so Express Grain could secure financing.
Mediation efforts began last month in Jackson. Craig Geno, Express Grain’s attorney, said Friday that enough farmers have come on board with the settlement proposal for it to move forward.
He credited Eric Johnson, attorney for UMB Bank, and Derek Henderson, an attorney representing numerous farmers, for being the primary drafters of the settlement.
Johnson said the settlement will carve out funds for the two opposing groups. There will also be funds for Express Grain’s wind-down operations.
Farmers have been divided into four groups:
- Those who intend to join in the settlement.
- Those who will not fight for their claims in court and will receive attorney fees.
- Those who intend to continue with the trial and fight for the full extent of their claim in court.
- Those who have not participated in the proceedings or may not have filed a formal claim. It is unknown how many of these farmers there are.
Both Johnson and Henderson said that attention has been given to non-participating farmers. The intention is to give enough notice to these farmers to allow them due process in the proceedings. There will be a deadline established for farmers to make a decision.
A notice of settlement, called a 9019 motion, is scheduled to be filed by Monday, laying out the major terms of the agreement in writing.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
