Updated bankruptcy documents filed this week by Express Grain Terminals reveal the company owes at least $156 million to a number of banks, other types of financial organizations, businesses and farmers.
That amount is almost 42% more than previously reported.
The documents, filed Monday with the U.S. Bankruptcy Court of the Northern District of Mississippi, show the company has increased its stated debt by more than $46 million since filing for bankruptcy in late September. At that time, Express Grain indicated it owed at least $110 million.
Click on Title To Read Document
Meanwhile, the documents list the company’s assets, which include $96 million in real estate, buildings and equipment.
Express Grain hired CR3 Partners LLC to restructure the company, but last week Ex-press Grain indicated in a letter to employees that the company may shut down and lay off workers if it could not soon secure more financing to remain operational. The letter was signed by Dennis Gerrard, a representative of CR3 who has been appointed as Express Grain’s chief restructuring officer.
Express Grain’s largest creditor, UMB Bank of Kansas City, Missouri, is owed at least $70 million. The bank has claimed liens on all of Express Grain’s property, including grain that has been delivered to the company.
Two other banks also are listed as secured creditors: BankPlus of Ridgeland, $32,000, and Bank of the West of Tempe, Arizona, $181,000.
At least $31 million is owed to farmers for grain that was delivered to the company and not paid for, though the company’s grain report shows that there is at least $40 million in outstanding pay to farmers.The discrepancy was not explained in court documents.
More than $23 million is owed to AMCREF Community Capital, a finance firm based in New Orleans. At least $30 million is owed to six other organizations, including nearly $7 million to Mini Strategies LLC, a finance firm in Jackson.
StoneX Commodity Solutions LLC and Macquarie Commodities Inc., both financial services companies, have “unknown” amounts of money owed. Both companies have also claimed ownership of grain currently held by Express Grain.
Farmers filed a brief last week disputing the claims that UMB, StoneX and Macquarie have made on the grain and are attempting to have the grain returned to them.
The company is also being investigated by the Mississippi Department of Agriculture and Commerce, which alleges Express Grain submitted a fraudulent financial document as part of its grain warehouse license renewal in 2021.
A civil suit brought by farmers against UMB Bank alleges that Express Grain misrepresented its financial condition to the department for years. Commissioner Andy Gipson said only the 2021 licenses are under investigation and that any investigation beyond the department’s jurisdiction will be referred to the proper authorities.
The department will hold a hearing to consider revoking the company’s license on Monday. Without a license, Express Grain will be forced to shut down.
On Tuesday, Ed Lawler, attorney for the Department of Agriculture, received permission from Judge Selene Maddox during a telephonic hearing to unseal two financial documents that are related to the investigation. Lawler said he has consulted with Express Grain and the company agreed to have the documents unsealed.
Maddox ordered that a letter of consent signed by Craig Geno, attorney for Express Grain, be submitted before the documents are unsealed.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
