One farmer will continue to pursue his claims in the bankruptcy of Express Grain Terminals LLC, as confirmed in a court hearing on Tuesday.
William Kyle Knight, owner of Knight Farms LLC in Bellefontaine, phoned into the proceeding and confirmed with Judge Selene Maddox of his intention to pursue his farm’s claims.
Earlier this year, farmers who sought payment from Express Grain had the option to sign on to a settlement with the company’s three largest creditors — UMB Bank, Macquarie Commodities and StoneX Commodity Solutions — and split $9 million that was negotiated for farmers.
Farmers who chose not to take a piece of the settlement could take their pursuit to another forum or continue their fight in Express Grain’s bankruptcy hearings.
Knight, along with Belmont Farms LLC, Kyle Mills Farms, Hunter Alderman and James H. Alderman, still had pending claims but had not made a decision.
Knight’s claims hearing was scheduled for Sept. 8 at the federal courthouse in Aberdeen. Maddox required that anyone wishing to be an active participant in the case appear live in the courtroom.
The only other farmer to make a decision was Samuel Pigott of Belmont Farms LLC, who appeared before Maddox in Aberdeen. Pigott told the judge that Belmont would not pursue its claims any further.
The three remaining farmers did not appear either at the Aberdeen courthouse or by phone. Maddox read each name three times and had it reflected on the record that those farmers weren’t present.
Claims for farmers who did not appear will be considered unsecured and join a long line of creditors owed money by Express Grain with little likelihood of being made whole.
Over the course of Express Grain’s bankruptcy, its total debt was established at more than $214 million.
A lawsuit between farmers and UMB Bank is ongoing, with the farmers alleging the bank knew of Express Grain’s declining financial condition but sought to seize the grain being delivered to the company as collateral.
The bank has denied the allegations and has petitioned to have the lawsuit dismissed. No decision on that request has been made.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
