A federal bankruptcy judge has cleared the way for Express Grain’s largest creditor to assign two other companies the rights to purchase Express Grain’s Leflore County facilities.
During a hearing held by telephone Thursday, Judge Selene Maddox, who has presided over Express Grain’s bankruptcy since September, said it was a “happy occasion” to see the company’s buildings in Greenwood, Sidon and Minter City potentially active and operational again.
UMB Bank, which was the highest bidder for Express Grain’s three properties, exercised its right to assign the purchase rights of those properties to FSB Companies of Chicago and Thoroughbred Agrifuel Holdings of Denver.
Both companies were also involved in the bidding process in February.
During the hearing, details were given on how to handle land that Express Grain leases from the state.
A portion of Express Grain’s Greenwood property sits on 16th Section land, which is held in trust for the Greenwood Leflore Consolidated School District.
Traditionally, 16th Section land is leased from a school district and a county, and the lessor makes ongoing payments. The question before the court was whether FSB and Thoroughbred would inherit any ongoing payments or responsibilities for these lands.
Greenwood attorney Charlie Swayze III explained to the court that Express Grain has a unique situation. The 16th Section land is currently in a 99-year lease that is not scheduled to expire until 2046. Express Grain inherited the lease when it purchased the oil mill from Delta Oil Mill in 2015.
He said that no action would have to be taken by the bankruptcy court or either company to complete the sale as there are no ongoing payments. Once the leases expire, the county and school district would likely reappraise the land and issue a new lease.
With that issue settled, testimony was given to demonstrate the worthiness of FSB and Thoroughbred as purchasers of the facilities.
Doug Noble, attorney for FSB CEO Frank Brumfield, explained that Brumfield was a native of Sunflower County and that Brumfield’s company had an interest in purchasing Express Grain’s grain warehouses in Sidon and Minter City.
He said Brumfield has established Delta Grain Company LLC to use the warehouses. Licenses with the Mississippi Department of Agriculture and Commerce have been applied for, employees have signed letters of intent and operations are ready for the harvest season as soon as the sale closes.
An attorney for Thoroughbred, Jonathan Hawkins, said the company was interested in purchasing the Greenwood oil mill but did not specify what the company intends to do with it.
No details were given on what the two companies would pay for the facilities. UMB’s high bid in February was $25 million, but it used a credit bid, which allowed it to bid up to the $70 million that is owed to it by the company.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
